Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

The Company's lease portfolio consists of real estate and co-location agreements in the U.S. and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 4.3 years. Certain of these leases contain options that allow the Company to extend or terminate the lease agreement. The Company's co-location leases have remaining lease terms of up to 5.8 years. All of the Company's leases are classified as operating leases.

The Company also subleases one of its leased office spaces. The sublease has a remaining lease term of 0.6 years. Sublease income, which is recorded as a reduction of rent expense was $0.7 million and $0.6 million for the three months ended September 30, 2020 and 2019, respectively, and $2.1 million and $1.0 million for the nine months ended September 30, 2020 and 2019, respectively.

The components of lease cost related to the Company's operating leases included in the condensed consolidated statements of operations were as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020
	(in thousands)
Operating lease cost	$	4,802	$	14,134
Sublease income	(694)		(2,111)
Total lease cost	$	4,108	$	12,023

Variable lease cost and short-term lease cost for the three and nine months ended September 30, 2020 were not material.

As of September 30, 2020, the Company had $15.1 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the condensed consolidated balance sheets. These operating leases will commence between October 2020 and October 2024 and have an average lease term of 3.2 years.

As of September 30, 2020, the weighted-average remaining term of the Company’s operating leases was 3.0 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 3.4%.

Maturities of the operating lease liabilities as of September 30, 2020 are as follows:

	September 30, 2020
	(in thousands)
2020 (remaining three months)	$	4,703
2021	18,440
2022	14,083
2023	7,645
2024	4,094
Thereafter	452
Total lease payments	$	49,417
Less: Imputed interest	$	(2,477)
Total operating lease liabilities	$	46,940

Prior to the Company's adoption of ASC 842, future minimum operating lease payments as of December 31, 2019 were as follows:

	December 31, 2019
	(in thousands)
2020	$	18,618
2021	16,942
2022	12,423
2023	6,410
2024	4,474
Thereafter	10,304
Total lease payments	$	69,171

The amounts above include the build-to-suit lease.

Prior to the Company's adoption of ASC 842, the Company recognized rent expense on a straight-line basis over the lease period. The difference between the rent paid and the straight-line rent was recorded as deferred rent, which was included in accrued expenses and other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. Rent expense was $3.1 million and $8.5 million for the three and nine months ended September 30, 2019, respectively.

Leases

Leases

The Company's lease portfolio consists of real estate and co-location agreements in the U.S. and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 4.3 years. Certain of these leases contain options that allow the Company to extend or terminate the lease agreement. The Company's co-location leases have remaining lease terms of up to 5.8 years. All of the Company's leases are classified as operating leases.

The Company also subleases one of its leased office spaces. The sublease has a remaining lease term of 0.6 years. Sublease income, which is recorded as a reduction of rent expense was $0.7 million and $0.6 million for the three months ended September 30, 2020 and 2019, respectively, and $2.1 million and $1.0 million for the nine months ended September 30, 2020 and 2019, respectively.

The components of lease cost related to the Company's operating leases included in the condensed consolidated statements of operations were as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020
	(in thousands)
Operating lease cost	$	4,802	$	14,134
Sublease income	(694)		(2,111)
Total lease cost	$	4,108	$	12,023

Variable lease cost and short-term lease cost for the three and nine months ended September 30, 2020 were not material.

As of September 30, 2020, the Company had $15.1 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the condensed consolidated balance sheets. These operating leases will commence between October 2020 and October 2024 and have an average lease term of 3.2 years.

As of September 30, 2020, the weighted-average remaining term of the Company’s operating leases was 3.0 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 3.4%.

Maturities of the operating lease liabilities as of September 30, 2020 are as follows:

	September 30, 2020
	(in thousands)
2020 (remaining three months)	$	4,703
2021	18,440
2022	14,083
2023	7,645
2024	4,094
Thereafter	452
Total lease payments	$	49,417
Less: Imputed interest	$	(2,477)
Total operating lease liabilities	$	46,940

Prior to the Company's adoption of ASC 842, future minimum operating lease payments as of December 31, 2019 were as follows:

	December 31, 2019
	(in thousands)
2020	$	18,618
2021	16,942
2022	12,423
2023	6,410
2024	4,474
Thereafter	10,304
Total lease payments	$	69,171

The amounts above include the build-to-suit lease.

Prior to the Company's adoption of ASC 842, the Company recognized rent expense on a straight-line basis over the lease period. The difference between the rent paid and the straight-line rent was recorded as deferred rent, which was included in accrued expenses and other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. Rent expense was $3.1 million and $8.5 million for the three and nine months ended September 30, 2019, respectively.