Leases

6 Months Ended

Jun. 30, 2019

We lease office space and equipment under non-cancelable operating leases. We recognize operating lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to nine years. The exercise of lease renewal options is at our sole discretion. Certain of our lease agreements include rental payments that are adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The table below summarizes the carrying amount of our operating lease assets and liabilities:



Leases	Classification	As of June 30, 2019
Assets
Operating lease assets	Operating lease assets	$	155,100
Total lease assets		$	155,100
Liabilities
Current
Operating lease liabilities	Accounts payable, accrued expenses and other	$	29,653
Noncurrent
Operating lease liabilities	Noncurrent operating lease liabilities	177,110
Total lease liabilities		$	206,763

The table below summarizes total lease costs for the three and six months ended June 30, 2019, respectively:



Lease Cost	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease costs	$	11,044		$	21,909
Short-term lease costs	566			1,429
Variable lease costs	2,685			5,698
Sublease income	(1,246		)	(2,443		)
Total lease cost	$	13,049		$	26,593

We sublease certain of our leased office spaces to third parties. Our sublease portfolio consists of leases of office space that we have abandoned before the lease term expiration. Operating lease expense on abandoned office space is reduced by sublease rental income, which is recorded to SG&A expenses on the Condensed Consolidated Statements of Comprehensive Income. Our sublease arrangements do not contain renewal options or restrictive covenants. We estimate future sublease rental income to be $2.7 million in 2019, $4.9 million in 2020, $4.5 million in 2021, $0.7 million in 2022, $0.6 million in 2023 and $0.9 million in years beyond 2023.

The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet, our weighted-average remaining lease term and weighted average discount rate:



	As of June 30, 2019
	As of June 30, 2019
2019 (remaining)	$	15,170
2020	49,841
2021	46,881
2022	28,514
2023	23,973
Thereafter	88,704
Total future lease payments	253,083
Less: imputed interest	(46,320		)
Total	$	206,763

Weighted Average Remaining Lease Term (years)
Operating leases	6.7

Weighted Average Discount Rate
Operating leases	5.6		%

The table below summarizes cash paid for our operating lease liabilities and other non-cash information:



	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	23,199

Operating lease assets obtained in exchange for lease liabilities	$	19,162

Operating Lease Commitments

Under Topic 840, our future minimum payments for all operating lease obligations that have initial non-cancelable lease terms exceeding one year, net of rental income from subleases as of December 31, 2018 were as follows:



	Operating Leases		Sublease Rental Income
	Operating Leases		Sublease Rental Income
2019	$	49,757	$	4,760
2020	47,084		3,944
2021	44,480		3,864
2022	24,471		707
2023	20,309		614
Thereafter	75,190		939
Total	$	261,291	$	14,828