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Leases
6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases

Note 3. Leases

 

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 in accordance with ASC 842, Leases, and are included in “Operating lease right-of-use assets,” “Operating lease liabilities” and “Long-term operating lease liabilities” in the accompanying Condensed Consolidated Balance Sheet as of June 30, 2021. The Company has no finance leases.

Lease costs, net of sublease income, of $15.3 million and $15.5 million for the three months ended June 30, 2021 and 2020, respectively, and $30.9 million and $31.5 million for the six months ended June 30, 2021 and 2020, respectively, were primarily included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

Additional supplemental information related to leases was as follows:

 

June 30, 2021

 

 

December 31, 2020

 

Weighted average remaining lease term of operating leases

4.2 years

 

 

4.3 years

 

Weighted average discount rate of operating leases

 

3.4

%

 

 

3.4

%

 

Maturities of operating lease liabilities as of June 30, 2021 were as follows (in thousands):

 

Amount

 

2021 (remainder of the year)

$

25,367

 

2022

 

47,200

 

2023

 

31,600

 

2024

 

21,999

 

2025

 

14,725

 

2026 and thereafter

 

19,706

 

Total future lease payments

 

160,597

 

Less: Imputed interest

 

11,934

 

Present value of future lease payments

 

148,663

 

Less: Operating lease liabilities

 

48,321

 

Long-term operating lease liabilities

$

100,342

 

 

Exit of Leased Space

The Company continues to reevaluate 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. Since April 2020, the Company decided to terminate, sublease or abandon leases prior to the end of their lease terms at certain of its sites and recorded impairments of ROU assets as a result (see Note 4, Fair Value, for further information). During the three and six months ended June 30, 2021, the Company terminated two leases which resulted in a $1.7 million gain on lease terminations which was recorded in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.