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Leases
6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
Adoption of Topic 842
Effective January 1, 2021, the Company adopted Topic 842 utilizing the modified retrospective transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. The primary impact for the Company was the balance sheet recognition of operating lease ROU assets and operating lease liabilities. The Company does not have any finance leases.
The following table summarizes the impacts of adopting Topic 842 on the Company’s consolidated balance sheet as of December 31, 2020 (in thousands):
As Reported Balance as of December 31, 2020Adjustments due
to Topic 842
As Adjusted Balance
as of January 1,
2021
Assets
Operating lease right-of-use assets$195,944 $195,944 
Prepaid expenses and other current assets26,274 (8,106)18,168 
Total$26,274 $187,838 $214,112 
Liabilities
Accrued expenses and other current liabilities$65,392 $(1,704)$63,688 
Other long-term liabilities22,109 (21,983)126 
Operating lease liabilities—short-term32,162 32,162 
Operating lease liabilities—long-term179,363 179,363 
Total$87,501 $187,838 $275,339 
The Company has operating leases for real estate, and co-located data centers. During the three and six months ended June 30, 2021, operating lease expense was approximately $12.8 million and $24.8 million, respectively. Variable lease cost, short-term lease cost and sublease income were immaterial during the three and six months ended June 30, 2021. As of June 30, 2021, $45.3 million was included in accrued expenses and other current liabilities and $206.4 million as long-term operating lease liabilities.
The following table presents maturity of lease liabilities under the Company’s non-cancelable operating leases as of June 30, 2021 (in thousands):
Remainder of 2021$26,944 
202255,855 
202350,220 
202441,414 
202534,860 
Thereafter78,423 
Total lease payments$287,716 
Less: interest(1)36,000 
Present value of lease liabilities$251,716 
 
(1)Calculated using the interest rate for each lease.
In addition, the Company has executed operating leases for data centers, colocation space and facilities which have not commenced as of June 30, 2021. The legally binding minimum lease payments for these leases is $94.1 million with lease term ranging between three to ten years.
Of the above, approximately $90.0 million pertains to an amendment signed by the Company on June 30, 2021 for its headquarters office lease to include an additional space of approximately 123,000 square feet for a term of 9 years. The possession of this space is expected to be obtained in the first quarter of 2022.
The following table presents supplemental information for the six months ended June 30, 2021 (in thousands, except for weighted average and percentage data):
Weighted average remaining lease term6.22
Weighted average discount rate4.0 %
Cash paid for amounts included in the measurement of lease liabilities(1)
$25,141
Lease liabilities arising from obtaining new ROU assets$53,554
(1) Does not include $8.1 million of leasehold incentives received from the landlord.
ASC 840 Disclosures
Prior to the adoption of Topic 842, future minimum lease payments as of December 31, 2020, which were undiscounted, were as follows (in thousands): 
2021$51,397 
202254,477 
202347,915 
202438,970 
202532,223 
Thereafter55,882 
Total lease payments$280,864 
 
Rent expense for the three and six months ended June 30, 2020 was $10.0 million and $20.0 million, respectively.