LEASES

12 Months Ended

Dec. 31, 2019

The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the RoU Assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 11.4 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were immaterial for the years ended December 31, 2019, 2018 and 2017.

During the year ended December 31, 2019, the components of lease expense were as follows:



	Income Statement Classification	Year Ended December 31, 2019
Operating lease cost	Selling, general and administrative expenses	$	62,740
Variable lease cost	Selling, general and administrative expenses	8,730
Short-term lease cost	Selling, general and administrative expenses	3,870
Total lease cost		$	75,340

Rent expense under operating lease agreements for the years ended December 31, 2018 and 2017 was $46,924 and $37,916, respectively.

Supplemental cash flow information related to leases was as follows:



	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	59,952
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	107,822
Non-cash net increase due to lease modifications:
Operating lease right-of-use assets	$	10,124
Operating lease liabilities	$	10,192

Weighted average remaining lease term and discount rate as of December 31, 2019, were as follows:



	As of December 31, 2019
Weighted average remaining lease term, in years:
Operating leases	6.1
Weighted average discount rate:
Operating leases	3.6	%

As of December 31, 2019, operating lease liabilities will mature as follows:



Year ending December 31,	Lease Payments
2020	$	64,667
2021	54,343
2022	36,886
2023	27,018
2024	22,603
Thereafter	58,532
Total lease payments	264,049
Less: imputed interest	(25,660		)
Total	$	238,389

There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of December 31, 2019. There were no material lease agreements signed with related parties as of December 31, 2019.

As of December 31, 2019, the Company had committed to payments of $37,559 related to operating lease agreements that had not yet commenced. These operating leases will commence during various dates during 2020 with lease terms ranging from 1.2 to 10.9 years. The Company did not have any material finance lease agreements that had not yet commenced.