LEASES

3 Months Ended

Mar. 31, 2019

The Company leases office space and equipment used in connection with its operations under various operating leases, the majority of which contain escalation clauses. The Company does not have any financing leases.

ROU assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the present value of the Company’s obligation to make payments arising from leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term using the Company's incremental borrowing rate on the lease commencement date or January 1, 2019 for leases that commenced prior to that date. The Company combines the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If the lease includes one or more options to extend the term of the lease, the renewal option is considered in the lease term if it is reasonably certain the Company will exercise the option. Leases with an initial term of twelve months or less ("short-term leases") are not recorded on the accompanying consolidated balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease.

Variable lease payments consist primarily of common area maintenance, utilities and taxes, which are not included in the recognition of ROU assets and related lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.



Leases	Balance Sheet Classification	March 31, 2019
		(In thousands)
Assets:
Right of use assets	Right of use assets	$	91,650

Liabilities:
Current lease liabilities	Accrued expenses and other current liabilities	11,706
Long-term lease liabilities	Other long-term liabilities	99,720
Total lease liabilities		$	111,426



Lease Cost	Income Statement Classification	Three Months Ended March 31, 2019
		(In thousands)
Fixed lease cost	Selling and marketing expense	$	1,911
Fixed lease cost	General and administrative expense	1,785
Fixed lease cost	Product development expense	300
Total fixed lease cost ^(a)		3,996
Variable lease cost	Selling and marketing expense	304
Variable lease cost	General and administrative expense	191
Variable lease cost	Product development expense	30
Total variable lease cost		525
Net lease cost		$	4,521

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^(a)Includes approximately $0.3 million of short-term lease cost.

Maturities of lease liabilities^(b):



	March 31, 2019
	(In thousands)
2019	$	12,387
2020	18,511
2021	17,919
2022	16,905
2023	16,035
After 2023	60,764
Total	142,521
Less: Interest	31,095
Present value of lease liabilities	$	111,426

________________________

^(b) Lease payments exclude $30.8 million of legally binding minimum lease payments for leases signed but not yet commenced.

The following are the weighted average assumptions used for lease term and discount rate:



	March 31, 2019
Remaining lease term	7.9 years
Discount rate	5.97	%



	Three Months Ended March 31, 2019
	(In thousands)
Other Information:
Right of use assets obtained in exchange for lease liabilities	$	27,862
Cash paid for amounts included in the measurement of lease liabilities	$	4,753