Leases

6 Months Ended

Jun. 30, 2020

The Company leases office space, equipment and vehicles throughout the world. Many of the Company's operating leases include one or more options to renew at the Company's sole discretion. The lease renewal option terms generally range from 1 month to 5 years for office leases. The determination of whether to include any renewal or early termination options is made by the Company at lease inception when establishing the term of the lease. Based on the later of the lease's commencement date or Company's adoption of ASC-842 on January 1, 2019, the Company recognizes right-of use lease assets and lease liabilities on its consolidated balance sheet for all leases in excess of one year in duration. The lease liability represents the present value of the remaining lease payments, which only includes payments that are fixed and determinable at the time of commencement, over the lease term. The lease term may be adjusted for renewal or early termination options provided in the leases only if it is reasonably certain that the Company will exercise such options. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date for rent payments that are determined to be fixed, or are determinable at the lease commencement date. Some of the Company's lease arrangements require periodic increases in the Company's base rent that may be subject to certain economic indexes, among other items. In addition, these leases may require the Company to pay property taxes, utilities and other costs related to several of its leased office facilities. Typically, these amounts for such payments cannot be determined at the lease commencement date, and are identified as variable lease payment, which are recognized as incurred.

Total rent expense of $1,856 and $2,373 for the three months ended June 30, 2020 and 2019, respectively, and $4,163 and $4,359 for the six months ended June 30, 2020 and 2019, respectively, is included in selling, general and administrative and direct expenses in the consolidated statements of operations. Total rent expense for the six months ended June 30, 2020 and 2019 included $907 and $1,063, respectively, that was associated with leases with an initial term of 12 months or less, in addition to variable costs the Company is responsible for paying on all leases.

During the three months ended June 30, 2020, as a result of the COVID-19 pandemic, the Company received rent concessions from certain lessors primarily in the form of rent payment deferrals, where rents that were originally scheduled to be paid to such lessors during the three months ended June 30, 2020, per the terms of the leases, were agreed to not become due and payable until 2021, with the option to pay the amounts deferred in monthly installments, plus interest. In April 2020, the FASB issued a Q&A in order to simplify how ASC-842 should be applied to rent concessions received as a result of the pandemic, and provided an optional practical expedient that permits an entity to make an election to not evaluate whether concessions granted by lessors related to COVID-19 are lease modifications, under certain conditions. Entities that make this election can then apply the lease modification guidance in ASC-842 or account for the concession as if it were contemplated as part of the existing contract. The Company elected to apply such practical expedient and not apply the lease modification guidance and has accordingly continued to recognize the rent expense as if no deferral had been provided. The Company recorded a payable for these amounts reflected in accounts payable and accrued expenses in the Company's consolidated balance sheets of $586 for such rent deferrals.

The Company subleases certain real estate to third parties. The sublease income recognized for the three and six months ended June 30, 2020 was $380 and $556, respectively, and $143 and $286 for the three and six months ended June 30, 2019, respectively.

The following is a schedule of maturities of lease liabilities by year as of June 30, 2020:


	Total Operating Lease Payments			Total Finance Lease Payments
2020 (excluding the six months ended June 30, 2020)	$	6,312		$	16
2021	4,852			24
2022	4,062			24
2023	3,224			24
2024	2,219			10
Thereafter	3,952			—
Total minimum lease payments ^{(1) (2)}	24,621			98
Less amount representing imputed interest	3,889			—
Present value of lease obligations	$	20,732		$	98
Weighted average remaining lease term (years)	4.82			3.92
Weighted average discount rate	6.91		%	2.05		%

(1) Partially includes rent expense amounts payable in various foreign currencies and are based on the foreign currency exchange spot rates as of June 30, 2020, where applicable.

(2) Includes operating lease extensions to lease agreements that have been executed, but has not yet commenced, as of June 30, 2020.

Leases

The following is a schedule of maturities of lease liabilities by year as of June 30, 2020:


	Total Operating Lease Payments			Total Finance Lease Payments
2020 (excluding the six months ended June 30, 2020)	$	6,312		$	16
2021	4,852			24
2022	4,062			24
2023	3,224			24
2024	2,219			10
Thereafter	3,952			—
Total minimum lease payments ^{(1) (2)}	24,621			98
Less amount representing imputed interest	3,889			—
Present value of lease obligations	$	20,732		$	98
Weighted average remaining lease term (years)	4.82			3.92
Weighted average discount rate	6.91		%	2.05		%

(1) Partially includes rent expense amounts payable in various foreign currencies and are based on the foreign currency exchange spot rates as of June 30, 2020, where applicable.

(2) Includes operating lease extensions to lease agreements that have been executed, but has not yet commenced, as of June 30, 2020.