LEASES

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

LEASES

LEASESThe Company is a lessee to leases of corporate offices and certain office equipment. The majority of leases for corporate offices include one or more options to renew, with renewal terms ranging from two to five years. These renewal options have not been included in the calculation of right-of-use assets and lease liabilities, as the Company is not reasonably certain of the

exercise of these renewal options. The Company used its incremental borrowing rate to calculate the right-of-use asset and lease liability for each lease.

As of December 31, 2020, right-of-use assets totaled $84.1 million and lease liabilities, the current portion of which is included in accrued expenses and other current liabilities in the accompanying balance sheet, totaled $97.7 million. At December 31, 2019, right-of-use assets totaled $25.5 million and lease liabilities totaled $28.2 million. During the second quarter of 2020 the right-of-use assets and lease liabilities increased $65.7 million due to commencement of the lease, as defined under ASC Topic 842, Leases, for the Company’s new principal executive offices currently under construction in Charlotte, North Carolina.

Lease expense, which is included in general and administrative expense on the accompanying consolidated statements of operations and comprehensive income (loss), consists of the following (in thousands):

	Year Ended December 31,
	2020		2019
Operating lease cost	$	11,226	$	6,346
Short-term lease cost	59		86
Total lease cost	$	11,285	$	6,432

Weighted average remaining lease term and discount rate for operating leases are as follows:

	December 31, 2020		December 31, 2019
Weighted average remaining lease term	13.0 years		5.0 years
Weighted average discount rate	5.0	%	4.7	%

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

	Year Ended December 31,
	2020		2019
Net cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,359	$	6,779
Right-of-use assets obtained in exchange for new operating lease liabilities	$	66,881	$	21,969

Maturities of lease liabilities as of December 31, 2020 are as follows (in thousands):

	Operating Leases
Year ending December 31, 2021	$	9,147
Year ending December 31, 2022	12,823
Year ending December 31, 2023	12,617
Year ending December 31, 2024	10,973
Year ending December 31, 2025	9,336
Thereafter	96,062
Total lease payments	150,958
Less: Interest	44,959
Less: Tenant improvement allowances	8,261
Present value of lease liabilities	$	97,738

Rental expense for all operating leases, except those with terms of a month or less that were not renewed, charged to continuing operations was $3.4 million in 2018, which is included in general and administrative expense in the consolidated statements of operations and comprehensive income (loss).

The Company operated as a lessor in connection with office buildings in Charlotte, North Carolina acquired in December 2016. The properties were sold in 2019 to an unrelated third party. Rental income of $0.3 million in 2019 and $0.9 million in 2018 is included in other income on the accompanying consolidated statements of operations and comprehensive income (loss).

LEASES

LEASESThe Company is a lessee to leases of corporate offices and certain office equipment. The majority of leases for corporate offices include one or more options to renew, with renewal terms ranging from two to five years. These renewal options have not been included in the calculation of right-of-use assets and lease liabilities, as the Company is not reasonably certain of the

exercise of these renewal options. The Company used its incremental borrowing rate to calculate the right-of-use asset and lease liability for each lease.

As of December 31, 2020, right-of-use assets totaled $84.1 million and lease liabilities, the current portion of which is included in accrued expenses and other current liabilities in the accompanying balance sheet, totaled $97.7 million. At December 31, 2019, right-of-use assets totaled $25.5 million and lease liabilities totaled $28.2 million. During the second quarter of 2020 the right-of-use assets and lease liabilities increased $65.7 million due to commencement of the lease, as defined under ASC Topic 842, Leases, for the Company’s new principal executive offices currently under construction in Charlotte, North Carolina.

Lease expense, which is included in general and administrative expense on the accompanying consolidated statements of operations and comprehensive income (loss), consists of the following (in thousands):

	Year Ended December 31,
	2020		2019
Operating lease cost	$	11,226	$	6,346
Short-term lease cost	59		86
Total lease cost	$	11,285	$	6,432

Weighted average remaining lease term and discount rate for operating leases are as follows:

	December 31, 2020		December 31, 2019
Weighted average remaining lease term	13.0 years		5.0 years
Weighted average discount rate	5.0	%	4.7	%

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

	Year Ended December 31,
	2020		2019
Net cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,359	$	6,779
Right-of-use assets obtained in exchange for new operating lease liabilities	$	66,881	$	21,969

Maturities of lease liabilities as of December 31, 2020 are as follows (in thousands):

	Operating Leases
Year ending December 31, 2021	$	9,147
Year ending December 31, 2022	12,823
Year ending December 31, 2023	12,617
Year ending December 31, 2024	10,973
Year ending December 31, 2025	9,336
Thereafter	96,062
Total lease payments	150,958
Less: Interest	44,959
Less: Tenant improvement allowances	8,261
Present value of lease liabilities	$	97,738

Rental expense for all operating leases, except those with terms of a month or less that were not renewed, charged to continuing operations was $3.4 million in 2018, which is included in general and administrative expense in the consolidated statements of operations and comprehensive income (loss).

The Company operated as a lessor in connection with office buildings in Charlotte, North Carolina acquired in December 2016. The properties were sold in 2019 to an unrelated third party. Rental income of $0.3 million in 2019 and $0.9 million in 2018 is included in other income on the accompanying consolidated statements of operations and comprehensive income (loss).