LEASES

12 Months Ended

Dec. 31, 2019

The Company leases office space, data center facilities and equipment used in connection with its operations under various operating leases, the majority of which contain escalation clauses.

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 these 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(s). Lease expense is recognized on a straight-line basis over the term of the lease. As permitted by ASC 842, leases with an initial term of twelve months or less ("short-term leases") are not recorded on the accompanying consolidated balance sheet.

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	December 31, 2019
		(In thousands)
Assets:
Right-of-use assets	Right-of-use assets, net	$	101,243

Liabilities:
Current lease liabilities	Accrued expenses and other current liabilities	13,234
Long-term lease liabilities	Other long-term liabilities	119,375
Total lease liabilities		$	132,609



Lease Cost	Income Statement Classification	Year Ended December 31, 2019
		(In thousands)
Fixed lease cost	Cost of revenue	$	207
Fixed lease cost	Selling and marketing expense	9,277
Fixed lease cost	General and administrative expense	7,617
Fixed lease cost	Product development expense	1,456
Total fixed lease cost^(a)		18,557
Variable lease cost	Cost of revenue	—
Variable lease cost	Selling and marketing expense	1,572
Variable lease cost	General and administrative expense	1,021
Variable lease cost	Product development expense	308
Total variable lease cost		2,901
Net lease cost		$	21,458

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^(a)	Includes $0.6 million of short-term lease cost and $1.4 million of sublease income for the year ended December 31, 2019, respectively.

Maturities of lease liabilities as of December 31, 2019^(b):



For Years Ending December 31:	(In thousands)
2020	$	19,882
2021	23,059
2022	21,890
2023	20,658
2024	19,875
Thereafter	62,534
Total	167,898
Less: Interest	35,289
Present value of lease liabilities	$	132,609

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^(b) Lease payments exclude $0.3 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 as of December 31, 2019:



Remaining lease term	7.7 years
Discount rate	5.99	%



	Year Ended December 31, 2019
	(In thousands)
Other information:
Right-of-use assets obtained in exchange for lease liabilities	$	58,701
Cash paid for amounts included in the measurement of lease liabilities	$	18,363