Leases |
LEASES The Company's operating leases are primarily for office facilities. The leases have remaining terms ranging from one year to eleven years and may include options to extend or terminate the lease. The depreciable life of right-of-use assets is limited by the expected lease term. The components of lease expense are as follows (in thousands): | | | | | | | | | | | | | | | | | Three Months Ended | | | | March 31, 2022 | | March 31, 2021 | | | | | Operating lease cost (1) | $ | 15,357 | | | $ | 10,266 | | | | | | Variable lease cost | 4,225 | | | 2,952 | | | | | | Total operating lease cost | $ | 19,582 | | | $ | 13,218 | | | | | |
(1)Operating lease cost is presented net of sublease income. Sublease income for the three months ended March 31, 2022 and 2021, respectively, was not material. Supplemental cash flow information related to leases is as follows (in thousands): | | | | | | | | | | | | | | | | | Three Months Ended | | | | March 31, 2022 | | March 31, 2021 | | | | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | Operating cash outflows from operating leases | $ | 13,658 | | | $ | 16,224 | | | | | | Right-of-use assets obtained in exchange for lease obligations: | | | | | | | | Operating leases | $ | 66,690 | | | $ | 5,498 | | | | | |
Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): | | | | | | | | | | | | | As of | | March 31, 2022 | | December 31, 2021 | Operating lease right-of-use assets | $ | 401,154 | | | $ | 345,660 | | | | | | Operating lease liability, current (included in Accrued liabilities) | $ | 43,273 | | | $ | 37,116 | | Operating lease liability, non-current | 444,115 | | | 394,724 | | Total operating lease liability | $ | 487,388 | | | $ | 431,840 | | | | | | Weighted-average remaining term for operating leases (in years) | 8.47 | | 8.38 | Weighted-average discount rate for operating leases | 3.70 | % | | 3.98 | % |
Future lease payments under operating leases as of March 31, 2022 are as follows (in thousands): | | | | | | Year Ending December 31, | Operating Leases | 2022 (remaining 9 months) | $ | 42,216 | | 2023 | 66,166 | | 2024 | 64,539 | | 2025 | 68,737 | | 2026 | 69,013 | | Thereafter | 273,507 | | Total future lease payments | 584,178 | | Less: imputed interest | (84,730) | | Less: expected tenant improvement allowance | (12,060) | | Total | $ | 487,388 | |
As of March 31, 2022, the Company’s commitment relating to operating leases that have not yet commenced was $192.6 million. These operating leases will commence starting in fiscal year 2022 with lease terms of approximately three to eleven years.
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