Leases

3 Months Ended

Mar. 31, 2019

13. Leases

The Company has operating leases for corporate offices and datacenters. Excluding office leases, leases with an initial term of 12 months or less (that do not include an option to purchase the underlying asset) are not recorded on the condensed consolidated balance sheet, and are expensed on a straight-line basis over the lease term.

The Company’s leases typically include certain renewal options to extend the leases for up to 25 years, some of which include options to terminate the leases within one year. The exercise of lease renewal options is at the Company’s sole discretion. The Company combines lease and non-lease components of its leases and currently has no leases with options to purchase the leased property. The Company accounts for payments of maintenance and property tax costs paid by it as variable lease cost, which are expensed as incurred.

The components of lease cost are as follows (in thousands):

	Three Months Ended
	March 31, 2019
Operating lease cost	$	4,036
Variable lease cost		986
Sublease income		(139	)
Total lease cost	$	4,883

Supplemental cash flow information related to leases is as follows (in thousands):

	Three Months Ended
	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,411
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		1,218

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):

	March 31, 2019
Assets:
Operating lease right-of-use assets	$	60,978
Liabilities:
Other current liabilities	$	14,334
Operating lease liabilities		50,636
Total operating lease liabilities	$	64,970
Weighted average remaining operating lease term		7.02
Weighted average operating lease discount rate		3.96	%

The Company uses its incremental borrowing rate as the discount rate. As the Company enters into operating leases in multiple jurisdictions and denominated in currencies other than the U.S. dollar, judgment is used to determine the Company’s incremental borrowing rate including (1) conversion of its subordinated borrowing rate (using published yield curves) to an unsubordinated and collateralized rate (2) adjusting the rate to align with the term of each lease and (3) adjusting the rate to incorporate the effects of the currency in which the lease is denominated.

Maturities on lease liabilities as of March 31, 2019, are as follows (in thousands):

Fiscal year ending December 31,
2019	$	12,471
2020		14,895
2021		10,915
2022		8,387
2023		6,698
Thereafter		21,122
Total lease payments		74,488
Less: imputed interest		9,518
Total lease liability	$	64,970

Future payments under operating lease agreements accounted for under ASC 840,

Leases,

as of December 31, 2018, were as follows (in thousands):

Fiscal Year Ending December 31,
2019	$	16,925
2020		14,212
2021		10,538
2022		8,178
2023		6,529
Thereafter		21,196
Total minimum lease payments	$	77,578

As of March 31, 2019, the Company has additional operating leases for office facilities that have not yet commenced with minimum lease payments of

$3.7 million. These operating leases will commence between fiscal year 2019 and 2020 with lease terms of one to seven years.