Leases

6 Months Ended

Jun. 30, 2020

8. LEASES

The Company’s operating leases are primarily for office real estate. The leases have remaining lease terms ranging from one year to 10 years and may include options to extend or terminate.

The components of lease expense are as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Operating lease cost ⁽¹⁾	$	13,921		$	5,830		$	29,122		$	10,162
Sublease income		(899	)		(546	)		(1,685	)		(1,126	)
Net operating lease cost	$	13,022		$	5,284		$	27,437		$	9,036

(1)

For the three and six months ended June 30, 2020, variable lease costs were $3.3 million and $5.5 million, respectively. For the three and six months ended June 30, 2019, variable lease costs were not significant. Variable lease costs primarily include common area maintenance charges.

Supplemental cash flow information related to leases is as follows (in thousands):

	Six Months Ended
	June 30, 2020		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	15,184	$	7,440
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,771	$	83,780

Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):

	As of
	June 30, 2020			December 31, 2019
Operating lease right-of-use assets	$	269,900		$	283,291
Included in accounts payable and accrued liabilities:
Operating lease liability, current		27,120			17,896
Operating lease liability, non-current		306,750			301,694
Total operating lease liability	$	333,870		$	319,590

Weighted average remaining lease term
Operating leases (in years)	9.63			9.98
Weighted average discount rate
Operating leases		4.65	%		4.65	%

Future lease payments under operating leases as of June 30, 2020 were as follows (in thousands):

Year ending December 31,	Operating Leases
2020 (remaining 6 months)	$	15,891
2021		47,851
2022		44,740
2023		45,421
2024		44,689
Thereafter		246,828
Total future lease payments		445,420
Less: imputed interest		(88,238	)
Less: expected tenant improvement allowance		(23,312	)
Total	$	333,870

As of June 30, 2020, the Company has additional operating leases, primarily corporate offices, that have not yet commenced of $10.0 million. These operating leases will commence in fiscal year 2020 with lease terms of five years.