Leases

9 Months Ended

Sep. 30, 2021

The Company’s operating leases consist of office facilities, office equipment, and automobiles, and the Company’s finance lease consists of computer equipment. The finance lease is not material for the periods presented. As of September 30, 2021, the Company’s leases have remaining terms of less than one year to nine years, some of which include one or more options to renew, with renewal terms from one year to ten years and some of which include options to terminate the leases from less than one year to five years.

For contracts with lease and non‑lease components, the Company has elected not to allocate the contract consideration, and account for the lease and non-lease components as a single lease component. Payments under the Company’s lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Variable lease cost may include common area maintenance, property taxes, utilities, and fluctuations in rent due to a change in an index or rate. The Company has elected not to recognize a right‑of‑use asset or lease liability for short‑term leases (leases with a term of twelve months or less). Short‑term leases are recognized in the consolidated statements of operations on a straight‑line basis over the lease term. Short‑term lease expense was not material for the periods presented.

The components of operating lease cost reflected in the consolidated statements of operations were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Operating lease cost (1)	$	4,836	$	4,565	$	14,224	$	13,424
Variable lease cost	1,082		1,016		2,970		2,898
Short-term lease cost	4		20		15		27
Total operating lease cost	$	5,922	$	5,601	$	17,209	$	16,349

(1)Operating lease cost includes rent cost related to operating leases for office facilities of $4,619 and $4,386 for the three months ended September 30, 2021 and 2020, respectively, and $13,588 and $12,857 for the nine months ended September 30, 2021 and 2020, respectively.

Other information related to leases was as follows:


	Nine Months Ended
	September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,602	$	13,589
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	$	5,286	$	14,530

(1)Right‑of‑use assets obtained in exchange for new operating lease liabilities does not include the impact from acquisitions of $12,074 and $1,668 for the nine months ended September 30, 2021 and 2020, respectively.

The weighted average remaining lease term for operating leases was 3.8 years and 3.7 years as of September 30, 2021 and December 31, 2020, respectively. The weighted average discount rate was 2.1% as of September 30, 2021 and December 31, 2020.

Maturities of operating lease liabilities are as follows:


	September 30, 2021
Remainder of 2021	$	5,049
2022	17,420
2023	12,186
2024	7,541
2025	5,268
Thereafter	4,898
Total future lease payments	52,362
Less: Imputed interest	(1,776)
Total operating lease liabilities	$	50,586

As of September 30, 2021, the Company had additional operating lease minimum lease payments of $7,649 for executed leases that have not yet commenced, primarily for office locations.

Supplemental balance sheet information related to the financing lease was as follows:


	September 30, 2021		December 31, 2020
Property and equipment	$	482	$	572
Accumulated depreciation	(394)		(229)
Property and equipment, net	$	88	$	343

Accruals and other current liabilities	$	146	$	197
Other liabilities	—		99
Total financing lease liabilities	$	146	$	296

Leases

The components of operating lease cost reflected in the consolidated statements of operations were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Operating lease cost (1)	$	4,836	$	4,565	$	14,224	$	13,424
Variable lease cost	1,082		1,016		2,970		2,898
Short-term lease cost	4		20		15		27
Total operating lease cost	$	5,922	$	5,601	$	17,209	$	16,349

Other information related to leases was as follows:


	Nine Months Ended
	September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,602	$	13,589
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	$	5,286	$	14,530

Maturities of operating lease liabilities are as follows:


	September 30, 2021
Remainder of 2021	$	5,049
2022	17,420
2023	12,186
2024	7,541
2025	5,268
Thereafter	4,898
Total future lease payments	52,362
Less: Imputed interest	(1,776)
Total operating lease liabilities	$	50,586

As of September 30, 2021, the Company had additional operating lease minimum lease payments of $7,649 for executed leases that have not yet commenced, primarily for office locations.

Supplemental balance sheet information related to the financing lease was as follows:


	September 30, 2021		December 31, 2020
Property and equipment	$	482	$	572
Accumulated depreciation	(394)		(229)
Property and equipment, net	$	88	$	343

Accruals and other current liabilities	$	146	$	197
Other liabilities	—		99
Total financing lease liabilities	$	146	$	296