On January 1, 2019, the Company adopted ASC 842, which includes ASU 2016-02 and all related amendments, using the modified retrospective method and recognized a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting for leases under ASC 840, Leases.

The adoption of ASC 842 on January 1, 2019 had a material impact on the Company’s Consolidated Balance Sheet. ASC 842 required the gross up of historical deferred rent which resulted in the recognition of $225.3 million of right-of-use ("ROU") assets, $239.3 million of operating lease liabilities, a $0.1 million increase to opening retained earnings, as well as $14.1 million primarily related to the derecognition of net straight-line lease liabilities. The retained earnings adjustment was due to the cumulative impact of adopting ASC 842, primarily resulting from the derecognition of embedded lease derivatives, the difference between deferred rent balances and the net of ROU assets and lease liabilities and the deferred tax impact.

The impact of the adoption of ASC 842 to the Company’s Consolidated Statements of Operations for the year ended December 31, 2019 was not material. The Company’s net cash provided by operating activities for the year ended December 31, 2019 did not change due to the adoption of ASC 842.

The Company leases facilities for its corporate headquarters, many of its customer experience management centers, several regional support offices and data centers. These leases are classified as operating leases and are included in

“Operating lease right-of-use assets,” “Operating lease liabilities” and “Long-term operating lease liabilities” in the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019. The Company has no finance leases.

Lease terms for the Company’s leases are generally three to 20 years with renewal options typically ranging from one month to five years and largely require the Company to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. The Company's operating leases have remaining lease terms of one month to 12 years as of December 31, 2020.

The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The Company subleases certain of its facilities that have been abandoned before the expiration of the lease term. Operating lease costs on abandoned facilities are reduced by sublease income and included in “General and administrative” costs in the accompanying Consolidated Statements of Operations. The Company’s sublease arrangements do not contain renewal options or restrictive covenants. The Company’s subleases have varying remaining lease terms extending through 2025, and future contractual sublease payments are expected to be $9.3 million over the remaining lease terms.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (in thousands):

		Years Ended December 31,
	Statement of Operations Location	2020			2019
Operating lease cost	General and administrative	$	60,131		$	59,381
Operating lease cost	Direct salaries and related costs		13			186
Short-term lease cost	General and administrative		1,659			2,571
Short-term lease cost	Direct salaries and related costs		382			32
Variable lease cost	General and administrative		4,326			4,608
Sublease income	General and administrative		(3,498	)		(2,770	)
		$	63,013		$	64,008

	December 31,
	2020			2019
Weighted average remaining lease term of operating leases	4.3 years			5.1 years
Weighted average discount rate of operating leases		3.4	%		3.7	%

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

	Amount
2021	$	60,980
2022		47,721
2023		32,007
2024		22,919
2025		14,592
2026 and thereafter		18,797
Total future lease payments		197,016
Less: Imputed interest		14,752
Present value of future lease payments		182,264
Less: Operating lease liabilities		55,928
Long-term operating lease liabilities	$	126,336

The Company is reevaluating its real estate footprint in connection with a transition of a portion of its workforce to a permanent remote working environment in both the Americas and EMEA. The Company decided to terminate, sublease or abandon leases prior to the end of their lease terms at certain of its sites during the year ended December 31, 2020 and recorded impairments of ROU assets as a result. See Note 6, Fair Value, for further information.

Rental expense under operating leases, primarily included in “General and administrative” in the accompanying Consolidated Statements of Operations, for the year ended December 31, 2018 was $68.0 million.