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Leases
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases

Note 5 — Leases

All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease right-of-use (“ROU”) assets and non-current operating lease liabilities are included as individual line items on the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets and are not material.

The components of lease expense were as follows (in thousands):

 

 

For the Three Months Ended June 30,

 

 

2020

 

 

2019

 

Operating lease cost

$

3,944

 

 

$

3,727

 

Short-term lease cost

 

81

 

 

 

85

 

Variable lease cost

 

1,660

 

 

 

1,335

 

Sublease income

 

(63

)

 

 

 

Total lease cost

$

5,622

 

 

$

5,147

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

 

 

2020

 

 

2019

 

Operating lease cost

$

7,935

 

 

$

7,296

 

Short-term lease cost

 

163

 

 

 

340

 

Variable lease cost

 

3,016

 

 

 

2,569

 

Sublease income

 

(124

)

 

 

 

Total lease cost

$

10,990

 

 

$

10,205

 

 

Additional lease information is summarized in the following table (in thousands, except lease term and discount rate):

 

 

Six Months Ended

 

 

Six Months Ended

 

 

June 30, 2020

 

 

June 30, 2019

 

Cash paid for amounts included in the measurement of operating

   lease liabilities

$

6,204

 

 

$

6,216

 

Operating right-of-use assets obtained in exchange for lease

   obligations

$

3,898

 

 

$

16,626

 

Weighted-average remaining lease term - operating leases (years)

 

6.1

 

 

 

6.7

 

Weighted-average discount rate - operating leases

 

5.0

%

 

 

5.1

%

 

Future minimum lease payments under non-cancellable leases as of June 30, 2020 are as follows (in thousands):

 

2020 (remainder)

$

7,654

 

2021

 

14,202

 

2022

 

14,106

 

2023

 

13,587

 

2024

 

13,215

 

Thereafter

 

24,698

 

Total lease payments

 

87,462

 

Less imputed interest

 

(12,243

)

Present value of lease liabilities

$

75,219

 

 

Lease balances as of June 30, 2020 are as follows (in thousands):

 

Operating lease right-of-use assets

$

63,837

 

 

 

 

 

Short-term operating lease liabilities (1)

$

11,729

 

Non-current operating lease liabilities

 

63,490

 

Total operating lease liabilities

$

75,219

 

 

(1)

Included in accrued expenses and other current liabilities on the Consolidated Balance Sheets.

The Company’s leases do not contain residual value guarantees, material restrictions or covenants, and all sublease transactions are not material. The Company incurred $1.4 million of ROU asset impairments during the three months ended March 31, 2020 related to facility leases from the SiriusDecisions, Inc. acquisition. These impairments are recorded in acquisition and integration costs in the Consolidated Statements of Operations.

During the three months ended June 30, 2020, the Company did not enter into any new leases. As of June 30, 2020, only one of the operating leases entered into during the prior quarter had not yet commenced. This operating lease, which consists of $13.9 million of undiscounted lease payments, has a lease term of ten years and is expected to commence later in 2020.

Additionally, the Company could receive a variable incentive payment from one of its landlords to terminate the related office space lease early. The range of possible incentive payments is zero to $3.5 million, would be received in late 2020 or the first half of 2021, and is dependent on the Company’s ability to exit the existing facility by the proposed early termination dates.