Leases

9 Months Ended

Sep. 30, 2020

9. Leases

The Company has entered into various noncancelable operating leases for its facilities expiring between 2020 and 2029. Certain lease agreements contain an option for the Company to renew a lease for a term of up to five years or an option to terminate a lease early within three years. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis.

Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred.

The components of lease cost recognized within the Company’s condensed consolidated statements of operations were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease cost⁽¹⁾	$	4,252	$	3,885	$	12,322	$	9,715
Variable lease cost⁽²⁾		—		126		—		136
Short-term lease cost		867		564		2,763		2,148

1)	Includes non-cash lease expense of $3.4 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively, and $10.0 million and $7.6 million for the nine months ended September 30, 2020 and 2019, respectively.

2)	Primarily related to Consumer Price Index adjustments, common area maintenance and property tax.

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands):

	Nine Months Ended September 30,
	2020		2019
Cash paid for amounts included in measurement of lease liabilities	$	10,622	$	6,077
Operating lease assets obtained in exchange for new lease liabilities		11,581		14,618

Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands):

	Amount
Remainder of 2020	$	4,421
2021		17,627
2022		17,410
2023		15,291
2024		2,572
2025 and beyond		15,512
Total lease payments	$	72,833
Less: imputed interest		(8,100	)
Present value of lease liabilities	$	64,733

As of September 30, 2020, the Company had two additional operating leases that had not yet commenced, which are excluded from the table above. The first operating lease will commence in fiscal year 2021 and had $19.0 million of undiscounted future payments with a lease term of 7.75 years. The second operating lease will commence in October 2020 and had $7.1 million of undiscounted future payments with a lease term of 3.25 years.

Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows:

September 30,

2020

December 31,

2019

Weighted-average remaining lease term (years)

4.8

4.0

Weighted-average discount rate

4.75

4.98