LEASES

The Company leases office space, corporate apartments, office equipment, and vehicles. The Company leases office space in order to minimize risks associated with ownership such as fluctuations in real estate prices. The leasing of corporate apartments is used to minimize costs associated with business trips of Company personnel. Many of the Company’s leases contain charges for common area maintenance or other miscellaneous expenses that are variable. Due to this variability, the cash flows associated with these charges are not included in the minimum lease payments used in determining the RoU Assets and associated lease liabilities. The Company subleases a portion of its office space to third parties. The Company leases office equipment for those assets requiring extensive customer support including maintenance, repairs and replacement of obsolete parts. The Company leases vehicles in certain locations primarily as an employee benefit.

The Company’s leases have remaining lease terms ranging from 9 days to 11.8 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option.

A portion of the leases for office space are subject to annual changes in base rent rates. Changes in such rates are treated as variable lease payments and are recognized in the period in which the obligation of such payments is incurred. The Company does not remeasure its lease liabilities as a result of these annual changes in base rent rates.

During the three months ended March 31, 2019, the components of lease expense were as follows:



	Income Statement Classification	Three Months Ended March 31, 2019
Operating lease cost	Selling, general and administrative expenses	$	13,719
Variable lease cost	Selling, general and administrative expenses	2,097
Short-term lease cost	Selling, general and administrative expenses	898
Sublease income	Interest and other income, net	(455		)
Total lease cost		$	16,259

Supplemental cash flow information related to leases was as follows:



	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	14,696
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	12,825
Non-cash net decrease due to lease modifications:
Operating lease right-of-use assets	$	5,174
Operating lease liabilities	$	5,106

Weighted average lease terms and discount rates as of March 31, 2019:



	As of March 31, 2019
Weighted average remaining lease term, in years:
Operating leases	5.9
Weighted average discount rate:
Operating leases	4.0	%

As of March 31, 2019, operating lease liabilities will mature as follows:



Year ending December 31,	Lease Payments
2019 (excluding three months ended March 31, 2019)	$	34,903
2020	39,415
2021	31,324
2022	20,199
2023	15,911
Thereafter	48,096
Total lease payments	189,848
Less: imputed interest	(22,057		)
Total	$	167,791

There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of March 31, 2019. There were no lease agreements signed with related parties as of March 31, 2019.

As of March 31, 2019, the Company had committed to payments of $57,716 related to operating lease agreements that had not yet commenced. These operating leases will commence during various dates during 2019 through 2020 with lease terms ranging from 1.3 to 12.0 years. The Company did not have any material finance lease agreements that had not yet commenced.