Leases

12 Months Ended

Dec. 31, 2019

Operating Leases

We lease certain office and residential space under non-cancelable operating leases with various lease terms through June 2043. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain office leases include one or more options to renew, with renewal terms that can extend the lease term from 3 to 5 years. The exercise of lease renewal options is at our sole discretion and is generally excluded from the lease term at lease inception. Our leases generally require us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent.

The components of lease expense recognized under ASC 842 were as follows (in thousands):


	Year ended December 31, 2019
Operating lease cost	$	3,544
Short-term lease cost	1,324
Variable lease cost	923
	$	5,791

Under ASC 840, rent expense for the years ended December 31, 2018 and 2017 was $5.6 million and $4.7 million, respectively.

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


	Year ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,018
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,207

Other supplemental information related to leases was as follows:


	As of December 31, 2019
Weighted Average Remaining Lease Term (in years)
Operating leases	7.6
Weighted Average Discount Rate
Operating leases	5.7	%

As of December 31, 2019, future estimated minimum lease payments under non-cancelable operating leases were as follows (in thousands):


	Operating Leases
2020	$	4,198
2021	4,327
2022	3,872
2023	3,540
2024	2,751
Thereafter	8,504
Total minimum lease payments	27,192
Less: Amount representing interest	(5,564)
Total	$	21,628

In June 2019, we signed an operating lease agreement to lease office space in Amsterdam starting on January 13, 2020 for three years, which was conditional upon termination of our current lease. We will pay the landlord a base rent of approximately $73,000 per month for three floors of a larger building. Subsequently, on November 1, 2019, we entered into an agreement with our current landlord to terminate our lease, effective January 12, 2020.