Leases

6 Months Ended

Jun. 30, 2021

9. LEASES

The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from two to eleven years and may include options to extend or terminate the lease. The depreciable life of ROU assets is limited by the expected lease term.

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

	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Operating lease cost⁽¹⁾	$	11,381	$	9,691	$	21,647	$	21,908
Variable lease cost		4,541		3,331		7,493		5,529
Net operating lease cost	$	15,922	$	13,022	$	29,140	$	27,437

⁽¹⁾ Operating lease cost is presented net of sublease income. Sublease income for the three and six months ended June 30, 2021 was $0.2 million. Sublease income for the three and six months ended June 30, 2020 was $0.9 million and $1.7 million, respectively.

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

	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	11,755	$	5,733	$	27,979	$	15,184
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	41,038	$	3,566	$	46,536	$	2,771

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

	As of
	June 30, 2021			December 31, 2020
Operating lease right-of-use assets	$	298,949		$	266,197

Operating lease liability, current (included in accrued liabilities)	$	34,007		$	35,647
Operating lease liability, non-current		336,948			307,936
Total operating lease liability	$	370,955		$	343,583

Weighted-average remaining lease term:
Operating leases (in years)	8.8			9.05
Weighted-average discount rate:
Operating leases		4.33	%		4.60	%

Future lease payments under operating leases as of June 30, 2021 are as follows (in thousands):

Year Ending December 31,	Operating Leases
2021 (remaining 6 months)	$	23,604
2022		49,456
2023		53,703
2024		52,637
2025		52,403
Thereafter		241,637
Total future lease payments		473,440
Less: imputed interest		(81,286	)
Less: expected tenant improvement allowance		(21,199	)
Total	$	370,955

As of June 30, 2021, the Company’s commitment relating to operating leases that have not yet commenced was $4.4 million. These operating leases will commence in fiscal year 2021 with lease terms of approximately four years.