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LEASES
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
LEASES LEASES
The Company leases land, 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 and its publicly-traded subsidiaries' respective incremental borrowing rates 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
 
$
167,801

 
 
 
 
 
Liabilities:
 
 
 
 
Current lease liabilities
 
Accrued expenses and other current liabilities
 
33,118

Long-term lease liabilities
 
Other long-term liabilities
 
190,772

Total lease liabilities
 
 
 
$
223,890


Lease Cost
 
Income Statement Classification
 
Year Ended December 31, 2019
 
 
 
 
(In thousands)
Fixed lease cost
 
Cost of revenue
 
$
4,106

Fixed lease cost
 
Selling and marketing expense
 
10,641

Fixed lease cost
 
General and administrative expense
 
34,639

Fixed lease cost
 
Product development expense
 
1,541

Total fixed lease cost(a)
 
 
 
50,927

Variable lease cost
 
Cost of revenue
 
441

Variable lease cost
 
Selling and marketing expense
 
1,573

Variable lease cost
 
General and administrative expense
 
7,853

Variable lease cost
 
Product development expense
 
391

Total variable lease cost
 
 
 
10,258

Net lease cost
 
 
 
$
61,185

_____________________
(a) Includes approximately $5.3 million of short-term lease cost and $2.1 million of sublease income for the year ended December 31, 2019.
Maturities of lease liabilities as of December 31, 2019 (in thousands)(b):
Years Ended December 31,
 
 
2020
 
$
43,902

2021
 
40,567

2022
 
32,135

2023
 
28,607

2024
 
25,594

Thereafter
 
226,734

Total
 
397,539

Less: Interest
 
173,649

Present value of lease liabilities
 
$
223,890

_____________________
(b) Lease payments exclude $37.7 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
 
15.4 years

Discount rate
 
6.00
%

 
 
Year Ended December 31, 2019
 
 
(In thousands)
Other information:
 
 
Right-of-use assets obtained in exchange for lease liabilities
 
$
66,408

Cash paid for amounts included in the measurement of lease liabilities
 
$
49,117