| Leases |
9. LEASES
The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from two to eleven years and may include options to extend or terminate the lease. The depreciable life of ROU assets is limited by the expected lease term.
The components of lease expense are as follows (in thousands):
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
June 30, 2021 |
|
|
June 30, 2020 |
|
|
June 30, 2021 |
|
|
June 30, 2020 |
|
|
Operating lease cost(1) |
|
$ |
11,381 |
|
|
$ |
9,691 |
|
|
$ |
21,647 |
|
|
$ |
21,908 |
|
|
Variable lease cost |
|
|
4,541 |
|
|
|
3,331 |
|
|
|
7,493 |
|
|
|
5,529 |
|
|
Net operating lease cost |
|
$ |
15,922 |
|
|
$ |
13,022 |
|
|
$ |
29,140 |
|
|
$ |
27,437 |
|
(1) Operating lease cost is presented net of sublease income. Sublease income for the three and six months ended June 30, 2021 was $0.2 million. Sublease income for the three and six months ended June 30, 2020 was $0.9 million and $1.7 million, respectively.
Supplemental cash flow information related to leases is as follows (in thousands):
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
June 30, 2021 |
|
|
June 30, 2020 |
|
|
June 30, 2021 |
|
|
June 30, 2020 |
|
|
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash outflows from operating leases |
|
$ |
11,755 |
|
|
$ |
5,733 |
|
|
$ |
27,979 |
|
|
$ |
15,184 |
|
|
Right-of-use assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating leases |
|
$ |
41,038 |
|
|
$ |
3,566 |
|
|
$ |
46,536 |
|
|
$ |
2,771 |
|
Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):
|
|
|
As of |
|
|
|
|
June 30, 2021 |
|
|
December 31, 2020 |
|
|
Operating lease right-of-use assets |
|
$ |
298,949 |
|
|
$ |
266,197 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease liability, current (included in accrued liabilities) |
|
$ |
34,007 |
|
|
$ |
35,647 |
|
|
Operating lease liability, non-current |
|
|
336,948 |
|
|
|
307,936 |
|
|
Total operating lease liability |
|
$ |
370,955 |
|
|
$ |
343,583 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average remaining lease term: |
|
|
|
|
|
|
|
|
|
Operating leases (in years) |
|
8.8 |
|
|
9.05 |
|
|
Weighted-average discount rate: |
|
|
|
|
|
|
|
|
|
Operating leases |
|
|
4.33 |
% |
|
|
4.60 |
% |
Future lease payments under operating leases as of June 30, 2021 are as follows (in thousands):
|
Year Ending December 31, |
|
Operating Leases |
|
|
2021 (remaining 6 months) |
|
$ |
23,604 |
|
|
2022 |
|
|
49,456 |
|
|
2023 |
|
|
53,703 |
|
|
2024 |
|
|
52,637 |
|
|
2025 |
|
|
52,403 |
|
|
Thereafter |
|
|
241,637 |
|
|
Total future lease payments |
|
|
473,440 |
|
|
Less: imputed interest |
|
|
(81,286 |
) |
|
Less: expected tenant improvement allowance |
|
|
(21,199 |
) |
|
Total |
|
$ |
370,955 |
|
As of June 30, 2021, the Company’s commitment relating to operating leases that have not yet commenced was $4.4 million. These operating leases will commence in fiscal year 2021 with lease terms of approximately four years.
|