Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

LEASES

We have operating leases for offices, research and development facilities and data centers. Our leases have remaining terms that range from less than one year to approximately seven years, some of which include one or more options to renew, with renewal terms of up to six years. Unless and until we are reasonably certain we will exercise these renewal options, we do not include renewal options in our lease terms for calculating our lease liability, as the renewal options allow us to maintain operational flexibility.

During the year ended December 31, 2019, we entered into a finance lease with $3.6 million lease liabilities arising from obtaining right-of-use assets with a lease term of approximately two years. Our remaining finance leases were not material to our condensed consolidated financial statements. The related assumptions and further disclosures for finance leases are not material.

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

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating lease expense	$	4.8	$	3.8	$	13.5	$	11.1
Variable lease expense (1)	0.7		0.7		1.7		1.9
Short-term lease expense	1.0		0.8		2.9		2.2
Total lease expense	$	6.5	$	5.3	$	18.1	$	15.2

(1) Variable lease expense for the nine months ended September 30, 2020 and September 30, 2019 predominantly included common area maintenance charges and parking expense.

Supplemental balance sheet information related to our operating leases was as follows (in millions, except lease term and discount rate):

	Classification	September 30, 2020			December 31, 2019
Operating lease ROU assets - non-current	Other assets	$	45.6		$	44.3
Operating lease liabilities - current	Accrued liabilities	$	17.2		$	15.5
Operating lease liabilities - non-current	Other liabilities	31.0			30.6
Total operating lease liabilities		$	48.2		$	46.1
Weighted average remaining lease term in years - operating leases		3.6			3.7
Weighted average discount rate - operating leases		3.2		%	2.8		%

Supplemental cash flow information related to leases was as follows (in millions):

	Nine Months Ended		Nine Months Ended
	September 30, 2020		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	13.8	$	11.9

Maturities of operating lease liabilities as of September 30, 2020 were as follows (in millions):

Year ending December 31,	Amount
2020 (the remainder of 2020)	$	4.2
2021	17.8
2022	12.6
2023	7.2
2024	5.3
Thereafter	4.0
Total lease payments	51.1
Less imputed interest	(2.9)
Total	$	48.2

As of September 30, 2020, we had additional minimum lease payments of $3.8 million relating to operating leases that had been signed but had not yet commenced and therefore were excluded from the table above. These leases will commence during 2020 and will have lease terms of approximately three to five years.

LEASES

LEASES

We have operating leases for offices, research and development facilities and data centers. Our leases have remaining terms that range from less than one year to approximately seven years, some of which include one or more options to renew, with renewal terms of up to six years. Unless and until we are reasonably certain we will exercise these renewal options, we do not include renewal options in our lease terms for calculating our lease liability, as the renewal options allow us to maintain operational flexibility.

During the year ended December 31, 2019, we entered into a finance lease with $3.6 million lease liabilities arising from obtaining right-of-use assets with a lease term of approximately two years. Our remaining finance leases were not material to our condensed consolidated financial statements. The related assumptions and further disclosures for finance leases are not material.

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

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating lease expense	$	4.8	$	3.8	$	13.5	$	11.1
Variable lease expense (1)	0.7		0.7		1.7		1.9
Short-term lease expense	1.0		0.8		2.9		2.2
Total lease expense	$	6.5	$	5.3	$	18.1	$	15.2

(1) Variable lease expense for the nine months ended September 30, 2020 and September 30, 2019 predominantly included common area maintenance charges and parking expense.

Supplemental balance sheet information related to our operating leases was as follows (in millions, except lease term and discount rate):

	Classification	September 30, 2020			December 31, 2019
Operating lease ROU assets - non-current	Other assets	$	45.6		$	44.3
Operating lease liabilities - current	Accrued liabilities	$	17.2		$	15.5
Operating lease liabilities - non-current	Other liabilities	31.0			30.6
Total operating lease liabilities		$	48.2		$	46.1
Weighted average remaining lease term in years - operating leases		3.6			3.7
Weighted average discount rate - operating leases		3.2		%	2.8		%

Supplemental cash flow information related to leases was as follows (in millions):

	Nine Months Ended		Nine Months Ended
	September 30, 2020		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	13.8	$	11.9

Maturities of operating lease liabilities as of September 30, 2020 were as follows (in millions):

Year ending December 31,	Amount
2020 (the remainder of 2020)	$	4.2
2021	17.8
2022	12.6
2023	7.2
2024	5.3
Thereafter	4.0
Total lease payments	51.1
Less imputed interest	(2.9)
Total	$	48.2

As of September 30, 2020, we had additional minimum lease payments of $3.8 million relating to operating leases that had been signed but had not yet commenced and therefore were excluded from the table above. These leases will commence during 2020 and will have lease terms of approximately three to five years.