Leases

6 Months Ended

Jun. 30, 2019

Our leases primarily relate to office facilities that have remaining terms of up to 10.5 years, some of which include one or more options to renew with renewal terms of up to 5 years and some of which include options to terminate the leases within the next 3 years. All of our leases are classified as operating leases.

In November 2017, we entered into a lease agreement with respect to 147,061 square feet of office space at 120 Causeway Street, Boston, Massachusetts for our new corporate headquarters. The term of the lease was 126 months. We took possession of the leased office space on May 1, 2019 at which time we recorded a ROU asset and corresponding lease liability of $58.6 million.

The components of lease expense were as follows:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(in thousands)
Operating lease cost	$	3,055	$	5,022
Short-term lease costs	137		286
Variable lease costs	592		1,009
Total lease costs	$	3,784	$	6,317

Supplemental balance sheet information related to the operating leases was as follows:



	As of June 30, 2019
	(in thousands, except lease term and discount rate)
Operating ROU assets	$	59,417

Operating lease liabilities, current portion	$	6,057
Operating lease liabilities, non-current portion	71,722
Total operating lease liabilities	$	77,779

Weighted average remaining lease term (in years) - operating leases	9.2
Weighted average discount rate - operating leases	7.8		%

Supplemental cash flow information related to leases was as follows:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	2,578	$	4,506
ROU assets obtained in exchange for new lease obligations	$	58,906	$	60,772

Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands):



2019 (for the remaining six months)	$	4,869
2020	11,959
2021	11,691
2022	11,391
2023	11,340
2024 and thereafter	53,561
Total lease payments	$	104,811
Less: imputed interest	(27,032		)
Total	$	77,779

In July 2019, we entered into a lease agreement with respect to 67,214 square feet at 100 Causeway Street, Boston, Massachusetts, to be located in the same complex as, and in order to expand, our corporate headquarters. The term of the lease is 102 months and is expected to commence in June 2021. Our future lease payments are approximately $35.0 million. We plan to take possession of the leased office space in the second quarter of 2021, at which time we will record an operating ROU asset and corresponding lease liability.

Under the prior lease accounting standard, as of December 31, 2018, the future minimum payments under non-cancellable leases, which included our future headquarters, were as follows (in thousands):



2019	$	9,899
2020	11,616
2021	10,933
2022	11,054
2023	11,136
Thereafter	53,648
Total	$	108,286