Leases

12 Months Ended

Dec. 31, 2020

8. Leases

The Company has operating leases primarily for corporate office space, and equipment. Certain lease agreements contain renewal options, rent abatement, and escalation clauses that are factored into our determination of lease payments when appropriate. The Company’s leases have remaining terms up to March 2032 with renewal terms up to June 2033 or options to terminate leases within the next six years.

Supplemental balance sheet information related to lease liabilities at December 31, 2020, was as follows (in thousands):


Lease-Related Assets and Liabilities	Financial Statement Line Items	As of December 31, 2020
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	217,075

Total right-of-use assets		$	217,075

Lease liabilities:
Operating leases	Operating lease liabilities	$	29,079
	Operating lease liabilities, noncurrent		229,800

Total lease liabilities		$	258,879

The components of lease expense included in the Company’s consolidated statements of operations include (in thousands):


	Year Ended December 31, 2020
Operating lease expense	$	53,576
Short-term lease expense		8,942
Variable lease expense		9,433
Less: Sublease income		19,769

Total lease expense, net	$	52,182

Variable lease costs are primarily related to payments made to lessors for common area maintenance, property taxes, insurance, and other operating expenses. Short-term lease costs primarily represent temporary employee housing. Finance leases were not material for the year ended December 31, 2020.

Maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands):


	As of December 31, 2020
Year ended December 31,	Operating Lease Commitments			Less: Sublease Income		Net Lease Commitments

2021	$	44,630		$	17,582	$	27,048
2022		40,099			12,418		27,681
2023		45,085			18,288		26,797
2024		41,629			16,407		25,222
2025		40,066			14,210		25,856
Thereafter		124,935			71,403		53,532

Total undiscounted liabilities		336,444			150,308		186,136
Less: Leases not yet commenced		(1,082	)		—		(1,082	)
Less: Imputed interest		(76,483	)		—		(76,483	)

Total operating lease liabilities	$	258,879		$	150,308	$	108,571

The weighted-average remaining lease term and discount rate related to the Company’s operating lease liabilities as of December 31, 2020 were 8.05 years and 6.34%, respectively. The following table sets forth the supplemental information related to the Company’s operating leases for the year ended December 31, 2020 (in thousands):


	Year Ended December 31, 2020
Cash paid for operating lease liabilities	$	58,157
Lease liabilities arising from obtaining right-of-use assets	$	17,647

As of December 31, 2020, the Company has additional operating leases for office space that have not yet commenced with future lease obligations of $1.1 million. These operating leases will commence in 2021 with lease terms of four years.

As of December 31, 2019, prior to the Company’s adoption of ASC 842, annual minimum payments under noncancelable operating leases were as follows (in thousands):


	Operating Lease Commitments		Less: Sublease Income		Net Operating Lease Commitments

2020	$	58,914	$	18,192	$	40,722
2021		49,093		17,582		31,511
2022		45,894		17,665		28,229
2023		44,861		17,532		27,329
2024		41,968		15,636		26,332
Thereafter		133,883		84,985		48,898

Total minimum lease payments	$	374,613	$	171,592	$	203,021

Under ASC 840, during the years ended December 31, 2019 and 2018, net rent expense was $38.5 million and $43.6 million, respectively, which included sublease income of $14.8 million and $13.1 million, respectively.