Right-of-Use Asset and Lease Liabilities

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Right-of-Use Asset and Lease Liabilities

Right-of-Use Asset and Lease Liabilities

The Company has entered into various operating lease agreements for office space and data centers and finance lease agreements for data center and office equipment and furniture.

As of June 30, 2021, the Company had 27 leased properties with remaining lease terms ranging from 0.4 years to 7.8 years, some of which include options to extend the leases for up to 5.0 years.

The components of the lease expense recorded in the accompanying condensed consolidated statements of operations were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	14,505	$	12,497	$	29,378	$	22,921
Finance lease cost:
Amortization of assets	2,804		1,830		5,484		3,734
Interest on lease liabilities	260		194		523		392
Short-term lease cost	846		1,091		2,538		2,503
Variable lease cost	2,033		1,884		4,933		3,180
Total net lease cost	$	20,448	$	17,496	$	42,856	$	32,730

Supplemental balance sheet information related to leases was as follows:

		As of		As of
		June 30,		December 31,
Leases	Classification	2021		2020
Assets:		(In thousands)
Operating lease assets	Operating right-of-use asset, net of accumulated amortization (1)	$	233,449	$	258,610
Finance lease assets	Property and equipment, net of accumulated depreciation (2)	25,553		25,771
Total leased assets		$	259,002	$	284,381
Liabilities:
Current
Operating	Operating lease liability, current	$	46,760	$	48,338
Finance	Finance lease liability, current	8,877		9,062
Noncurrent
Operating	Operating lease liability, noncurrent	205,997		229,905
Finance	Finance lease liability, noncurrent	17,804		17,856
Total lease liabilities		$	279,438	$	305,161

____________________________________

(1)Operating lease assets are recorded net of accumulated amortization of $75.9 million and $57.1 million as of June 30, 2021 and December 31, 2020, respectively.

(2)Finance lease assets are recorded net of accumulated depreciation of $20.5 million and $15.0 million as of June 30, 2021 and December 31, 2020, respectively.

Supplemental cash flow and other information related to leases was as follows:

	Six Months Ended June 30,
	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:	(In thousands)
Operating cash flows from operating leases	$	29,233		$	22,199
Operating cash flows from finance leases (interest)	$	523		$	392
Financing cash flows from finance leases	$	5,503		$	3,718
Weighted average remaining lease term (in years):
Operating leases	5.7			5.8
Finance leases	3.2			3.2
Weighted average discount rate:
Operating leases	4.8		%	5.4		%
Finance leases	3.6		%	4.8		%

Maturities of lease liabilities were as follows:

	As of June 30, 2021
	Operating Leases		Finance Leases
Year Ended December 31,	(In thousands)
2021 (remaining six months)	$	28,031	$	5,012
2022	58,023		8,987
2023	50,259		8,240
2024	45,716		4,999
2025	32,464		547
Thereafter	75,332		516
Total lease payments	289,825		28,301
Less: imputed interest	(37,068)		(1,620)
Total lease obligations	252,757		26,681
Less: current obligations	(46,760)		(8,877)
Long-term lease obligations	$	205,997	$	17,804

As of June 30, 2021, the Company had an additional operating lease obligation totaling $11.0 million for a lease that will commence in the first quarter of 2023 with a lease term of 6.2 years, and $5.1 million of additional finance leases that will commence in the third quarter of 2021 with lease terms of 4.0 years.

Right-of-Use Asset and Lease Liabilities

Right-of-Use Asset and Lease Liabilities

The Company has entered into various operating lease agreements for office space and data centers and finance lease agreements for data center and office equipment and furniture.

As of June 30, 2021, the Company had 27 leased properties with remaining lease terms ranging from 0.4 years to 7.8 years, some of which include options to extend the leases for up to 5.0 years.

The components of the lease expense recorded in the accompanying condensed consolidated statements of operations were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	14,505	$	12,497	$	29,378	$	22,921
Finance lease cost:
Amortization of assets	2,804		1,830		5,484		3,734
Interest on lease liabilities	260		194		523		392
Short-term lease cost	846		1,091		2,538		2,503
Variable lease cost	2,033		1,884		4,933		3,180
Total net lease cost	$	20,448	$	17,496	$	42,856	$	32,730

Supplemental balance sheet information related to leases was as follows:

		As of		As of
		June 30,		December 31,
Leases	Classification	2021		2020
Assets:		(In thousands)
Operating lease assets	Operating right-of-use asset, net of accumulated amortization (1)	$	233,449	$	258,610
Finance lease assets	Property and equipment, net of accumulated depreciation (2)	25,553		25,771
Total leased assets		$	259,002	$	284,381
Liabilities:
Current
Operating	Operating lease liability, current	$	46,760	$	48,338
Finance	Finance lease liability, current	8,877		9,062
Noncurrent
Operating	Operating lease liability, noncurrent	205,997		229,905
Finance	Finance lease liability, noncurrent	17,804		17,856
Total lease liabilities		$	279,438	$	305,161

____________________________________

(1)Operating lease assets are recorded net of accumulated amortization of $75.9 million and $57.1 million as of June 30, 2021 and December 31, 2020, respectively.

(2)Finance lease assets are recorded net of accumulated depreciation of $20.5 million and $15.0 million as of June 30, 2021 and December 31, 2020, respectively.

Supplemental cash flow and other information related to leases was as follows:

	Six Months Ended June 30,
	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:	(In thousands)
Operating cash flows from operating leases	$	29,233		$	22,199
Operating cash flows from finance leases (interest)	$	523		$	392
Financing cash flows from finance leases	$	5,503		$	3,718
Weighted average remaining lease term (in years):
Operating leases	5.7			5.8
Finance leases	3.2			3.2
Weighted average discount rate:
Operating leases	4.8		%	5.4		%
Finance leases	3.6		%	4.8		%

Maturities of lease liabilities were as follows:

	As of June 30, 2021
	Operating Leases		Finance Leases
Year Ended December 31,	(In thousands)
2021 (remaining six months)	$	28,031	$	5,012
2022	58,023		8,987
2023	50,259		8,240
2024	45,716		4,999
2025	32,464		547
Thereafter	75,332		516
Total lease payments	289,825		28,301
Less: imputed interest	(37,068)		(1,620)
Total lease obligations	252,757		26,681
Less: current obligations	(46,760)		(8,877)
Long-term lease obligations	$	205,997	$	17,804

As of June 30, 2021, the Company had an additional operating lease obligation totaling $11.0 million for a lease that will commence in the first quarter of 2023 with a lease term of 6.2 years, and $5.1 million of additional finance leases that will commence in the third quarter of 2021 with lease terms of 4.0 years.