LEASES

6 Months Ended

Jun. 30, 2019

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 variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the RoU Assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company subleases a portion of its office space to third parties. The Company leases office equipment for those assets requiring extensive 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 1 day to 11.9 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.

During the three and six months ended June 30, 2019, the components of lease expense were as follows:



	Income Statement Classification	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease cost	Selling, general and administrative expenses	$	15,196		$	28,915
Variable lease cost	Selling, general and administrative expenses	1,999			4,096
Short-term lease cost	Selling, general and administrative expenses	1,006			1,904
Sublease income	Interest and other income, net	(477		)	(932		)
Total lease cost		$	17,724		$	33,983

Supplemental cash flow information related to leases was as follows:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	14,105	$	28,801
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	40,722	$	53,547
Non-cash net increase due to lease modifications:
Operating lease right-of-use assets	$	8,324	$	3,150
Operating lease liabilities	$	8,358	$	3,252

Weighted average remaining lease term and discount rate as of June 30, 2019 is as follows:



	As of June 30, 2019
Weighted average remaining lease term, in years:
Operating leases	6.2
Weighted average discount rate:
Operating leases	3.6	%

As of June 30, 2019, operating lease liabilities will mature as follows:



Year ending December 31,	Lease Payments
2019 (excluding six months ended June 30, 2019)	$	29,047
2020	49,610
2021	41,267
2022	26,122
2023	19,659
Thereafter	64,305
Total lease payments	230,010
Less: imputed interest	(23,444		)
Total	$	206,566

There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of June 30, 2019. There were no lease agreements signed with related parties as of June 30, 2019.

As of June 30, 2019, the Company had committed to payments of $65,266 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 1.0 to 11.6 years. The Company did not have any material finance lease agreements that had not yet commenced.