Leases

9 Months Ended

Sep. 30, 2021

9. LEASES

The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from one to ten 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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Operating lease cost⁽¹⁾	$	11,291	$	10,126	$	32,938	$	32,034
Variable lease cost		3,555		2,904		11,048		8,433
Net operating lease cost	$	14,846	$	13,030	$	43,986	$	40,467

⁽¹⁾ Operating lease cost is presented net of sublease income. Sublease income for the three and nine months ended September 30, 2021 and September 30, 2020, respectively, was not material.

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

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	11,663	$	6,320	$	39,642	$	21,504
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	55,350	$	3,690	$	101,886	$	6,461

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

	As of
	September 30, 2021			December 31, 2020
Operating lease right-of-use assets	$	346,691		$	266,197

Operating lease liability, current (included in accrued liabilities)	$	34,723		$	35,647
Operating lease liability, non-current		394,515			307,936
Total operating lease liability	$	429,238		$	343,583

Weighted-average remaining lease term:
Operating leases (in years)	8.68			9.05
Weighted-average discount rate:
Operating leases		4.04	%		4.60	%

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

Year Ending December 31,	Operating Leases
2021 (remaining 3 months)	$	12,072
2022		50,364
2023		61,421
2024		60,168
2025		59,897
Thereafter		278,027
Total future lease payments		521,949
Less: imputed interest		(83,069	)
Less: expected tenant improvement allowance		(9,642	)
Total	$	429,238

As of September 30, 2021, the Company’s commitment relating to operating leases that have not yet commenced was $14.6 million. These operating leases will commence in fiscal years 2021 and 2022 with lease terms of approximately two to five years.