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Leases
3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases Leases
Adoption of Topic 842
Effective January 1, 2021, the Company adopted Topic 842 utilizing the modified retrospective transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. The primary impact for the Company was the balance sheet recognition of operating lease ROU assets and operating lease liabilities. The Company does not have any finance leases.
The Company has operating leases for real estate, and co-located data centers. During the three months ended March 31, 2022 and 2021, operating lease expense was approximately $17.3 million and $12.0 million, respectively. Variable lease cost, short-term lease cost and sublease income were immaterial during the three months ended March 31, 2022 and 2021. As of March 31, 2022, $53.3 million was included in accrued expenses and other current liabilities and $259.8 million as long-term operating lease liabilities.
The following table presents maturity of lease liabilities under the Company’s non-cancelable operating leases as of March 31, 2022 (in thousands):
Remainder of 2022$47,382 
202362,645 
202457,039 
202549,234 
202639,809 
Thereafter103,609 
Total lease payments$359,718 
Less: interest(1)
46,554 
Present value of lease liabilities$313,164 
(1)Calculated using the interest rate for each lease.
In addition, the Company has executed operating leases for data centers, colocation space and facilities which have not commenced as of March 31, 2022. The legally binding minimum lease payments for these leases is $600.9 million with lease term ranging between three to thirteen years.
Of the above, approximately $446.2 million pertains to a new lease signed by the Company in San Mateo, California, on March 10, 2022 for office space of approximately 440,000 square feet consisting of two buildings for a term of approximately 13 years and 12 years, respectively with two renewal options of 5 years each. The possession of one of the buildings is expected to be obtained in the second quarter of 2022 and the other is expected to be obtained in the second quarter of 2023. In addition, the Company expects to receive $23.0 million each in tenant improvement allowances for each of the two buildings.
The following table presents supplemental information for leases that have commenced for the three months ended March 31, 2022 (in thousands, except for weighted average and percentage data):
Weighted average remaining lease term6.57
Weighted average discount rate3.9 %
Cash paid for amounts included in the measurement of lease liabilities(1)
$14,784
Lease liabilities arising from obtaining new ROU assets$79,671
(1)Does not include $0.2 million of leasehold incentives received from the landlord.