10.

Leases

Operating and Finance Leases

The Company determines if a new contractual arrangement is a lease at contract inception. If a contract contains a lease, the Company evaluates whether it should be classified as an operating or a finance lease. If applicable as a lease, the Company records the related lease liabilities and ROU assets based on the future minimum lease payments over the lease term and only include options to renew a lease in the minimum lease payments if it is reasonably certain that the Company will exercise that option. For leases with original terms of

twelve

months or less, the Company recognizes the lease expense as incurred and does

not

recognize lease liabilities and ROU assets. The Company has operating leases for corporate offices worldwide, and for space at a data center. Additionally, the Company leases computer equipment through various finance leases.

Lease liabilities are measured based on the future minimum lease payments discounted over the lease term. The Company uses the discount rate implicit in the lease whenever that rate is readily determinable. For leases where

such rate is determinable, the Company uses its incremental borrowing rate, or the rate of interest that Company would have to pay to borrow an amount equal to the lease payments, on a collateralized basis over a similar term and in a similar economic environment. As of

March 31, 2019,

the weighted-average rate used in discounting the lease liabilities for ROU operating and finance leases was

6.8%

and

6.0%,

respectively. Current and non-current operating lease liabilities are presented on the condensed consolidated balance sheet, while current finance lease liabilities are included in accrued expenses and other current liabilities, and non-current finance lease liabilities are included in other long-term liabilities on the condensed consolidated balance sheets. Balances classified as capital lease obligations under previous lease guidance are presented for all periods prior to

three

months ended

March 31, 2019

to conform with the presentation of finance lease liabilities.

ROU assets are measured based on the associated lease liabilities, adjusted for any lease incentives such as tenant improvement allowances. ROU assets for operating leases are presented as non-current assets on the condensed consolidated balance sheet, while ROU assets for finance leases are included within property and equipment, net. For operating leases, the Company recognizes the expense for lease payments on straight-line basis over the lease term. As of

March 31, 2019,

the weighted-average remaining lease term for ROU operating and finance leases was

2.6

years and

1.3

years, respectively.

As of

March 31, 2019,

the Company had net operating lease ROU assets of

$11,787.

Operating lease costs, consisting primarily of rental expense, were approximately

$1,996

and

$2,119

for the

three

months ended

March 31, 2019

and

2018,

respectively. Variable rent expense was

not

material for the

three

months ended

March 31, 2019.

February 2019,

the Company executed a new lease agreement for office space in Paris, and exited its prior office space shortly thereafter. There were

material costs incurred associated with that exit. The new lease includes a non-cancellable

three

-year term through

2022,

as well as

two three

-year option periods that would extend the lease through

2028.

As of the inception of the lease, the Company is

not

reasonably certain that it will exercise those option periods, and has included lease payments for only the non-cancellable

three

-year term for the purposes of calculating the associated lease liability and ROU asset. Future changes in lease payments under this lease are dependent on a French rent index, and will be accounted for in the period those changes occur. As part of this lease, the Company was also required to enter into an irrevocable

$109

letter of credit, and has restricted from use cash in the same amount to secure the letter of credit. This balance has been classified as restricted cash on the accompanying condensed consolidated balance sheet.

At various dates between

August 2015

and

October 2016,

the Company entered into finance lease arrangements with

two

separate manufacturers for computer equipment. These finance leases are collateralized by the underlying computer equipment. As of

March 31, 2019,

the Company had net finance lease ROU assets of

$1,126.

Finance lease ROU assets are included in property and equipment on the condensed consolidated balance sheets. Interest expense associated with finance leases is included within other income (expenses) on the accompanying condensed consolidated statements of comprehensive loss. Finance lease costs for the

three

months ended

March 31, 2019

consisted of

$178

in depreciation of the leased assets, and

$24

in interest expense. Costs associated with capital leases for the

three

months ended

March 31, 2018

consisted of

$380

in depreciation of the leased assets, and

$43

in interest expense.

The maturities of operating lease and finance lease liabilities as of

March 31, 2019

are as follows:

	Operating Leases			Finance Leases
2019 (excluding the three months ended March 31, 2019)	$	6,072		$	961
2020		3,483			552
2021		3,212			11
2022		1,844			—
Total lease payments		14,611			1,524
Less: Amount representing imputed interest		(1,170	)		(63	)
Present value of lease liabilities		13,441			1,461
Less: Current portion of lease liabilities		(6,335	)		(1,103	)
Non-current portion of lease liabilities	$	7,106		$	358

Supplemental cash flow information related to operating leases was as follows:

	Three Months Ended
	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	338
Operating cash flows from finance leases		25
Operating cash flows from operating leases		2,123

ROU assets obtained in exchange for lease liabilities:
Finance lease liabilities	$	—
Operating lease liabilities		421

The operating lease ROU asset obtained relates to the Paris office lease executed in

February 2019.

Subleases

The Company also maintains sublease agreements for portions of its San Francisco and Portland office spaces. In

August 2018,

the Company entered into agreements to (a) extend its existing sublease for a portion of its San Francisco office space through

July 2022,

and (b) sublease an additional

14,380

square feet of its San Francisco office space to an unrelated

third

party through

July 2020,

with a subtenant option to extend the sublease through

July 2022.

The Company's sublease for its Portland office space is with an unrelated

third

party and expires in

May 2020.

Income from these sublease agreements is included in other income (expenses) on the condensed consolidated statements of comprehensive loss. Sublease income for the

three

months ended

March 31, 2019

and

2018

was

$570

and

$277,

respectively.

Future minimum amounts due under subleases as of

March 31, 2019

were as follows:

	Operating Sublease Income
2019 (excluding the three months ended March 31, 2019)	$	1,689
2020		1,768
2021		1,105
2022		616
Total amounts due under subleases	$	5,178