Leases

6 Months Ended

Jun. 30, 2019

The Company has operating leases for corporate offices and data centers. 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. Payments of maintenance and property tax costs paid by the Company are accounted for as variable lease cost, which are expensed as incurred.

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



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease cost	$	4,287		$	8,323
Variable lease cost	760			1,746
Sublease income	(141		)	(280		)
Total lease cost	$	4,906		$	9,789

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



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,849	$	10,260
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	4,984	$	6,202

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



	June 30, 2019
Assets:
Operating lease right-of-use assets	$	62,316
Liabilities:
Other current liabilities	$	15,193
Operating lease liabilities	50,550
Total operating lease liabilities	$	65,743
Weighted average remaining operating lease term (years)	6.78
Weighted average operating lease discount rate	4.07		%

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 June 30, 2019, are as follows (in thousands):



Fiscal Year Ending December 31,
Remainder of 2019	$	8,605
2020	16,547
2021	11,956
2022	9,130
2023	7,474
Thereafter	21,554
Total lease payments	75,266
Less: imputed interest	9,523
Total lease liability	$	65,743

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 June 30, 2019, the Company has additional operating leases for office facilities that have not yet commenced with minimum lease payments of $4.0 million. These operating leases will commence between fiscal year 2019 and 2020 with lease terms of three to seven years.