Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.1
Leases
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases
 Leases
We adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective approach. Prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 840. Our leases are primarily comprised of real estate leases of office facilities and equipment under operating leases that expire on various dates through 2033. In May 2015, we entered into a lease agreement for office space located in Richardson, Texas to serve as our corporate headquarters and data center. The lease is for a term of twelve years, beginning in 2016, and includes optional extension periods. The lease agreement contains provisions for rent escalations over the term of the lease and leasehold improvement incentives.
The components of lease costs for the three months ended March 31, 2019 were as follows, in thousands:
Operating lease cost
$
3,486

 
 
Finance lease cost:
 
Depreciation of finance lease asset
$
992

Interest on lease liabilities
1,045

Total finance lease cost
$
2,037


Rent expense for short-term leases in the first quarter of 2019 was not material.
Supplemental balance sheet information related to leases at March 31, 2019, was as follows:
 
Operating leases
 
Finance leases
 
Total leases
 
(in thousands, except lease term and discount rate)
Right-of-use assets
$
33,806

 
$
57,217

 
$
91,023

 
 
 
 
 
 
Lease liabilities, current (1)
$
10,492

 
$
3,115

 
$
13,607

Lease liabilities, net of current portion
29,283

 
76,512

 
105,795

Total lease liabilities
$
39,775

 
$
79,627

 
$
119,402

 
 
 
 
 
 
Weighted average remaining term (in years)
5.4

 
14.4

 
 
Weighted average discount rate
5.2
%
 
5.4
%
 
 
(1) 
Included in the line “Accrued expenses and other current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
Supplemental cash flow information related to leases for the three months ended March 31, 2019, was as follows, in thousands:
Cash payments for lease liabilities within operating activities:
 
Operating leases
$
3,658

Finance leases
$
1,045


At March 31, 2019, future maturities of lease liabilities due under these lease agreements were as follows for the years ending December 31, in thousands:
 
Operating leases
 
Finance leases
 
Total leases
2019
$
12,240

 
$
7,325

 
$
19,565

2020
7,905

 
7,425

 
15,330

2021
6,873

 
7,530

 
14,403

2022
5,668

 
7,635

 
13,303

2023
5,126

 
7,740

 
12,866

Thereafter
8,009

 
78,087

 
86,096

Total undiscounted lease payments
45,821

 
115,742

 
161,563

Present value adjustment
(6,046
)
 
(36,115
)
 
(42,161
)
Present value of lease payments
$
39,775

 
$
79,627

 
$
119,402

Leases
 Leases
We adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective approach. Prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 840. Our leases are primarily comprised of real estate leases of office facilities and equipment under operating leases that expire on various dates through 2033. In May 2015, we entered into a lease agreement for office space located in Richardson, Texas to serve as our corporate headquarters and data center. The lease is for a term of twelve years, beginning in 2016, and includes optional extension periods. The lease agreement contains provisions for rent escalations over the term of the lease and leasehold improvement incentives.
The components of lease costs for the three months ended March 31, 2019 were as follows, in thousands:
Operating lease cost
$
3,486

 
 
Finance lease cost:
 
Depreciation of finance lease asset
$
992

Interest on lease liabilities
1,045

Total finance lease cost
$
2,037


Rent expense for short-term leases in the first quarter of 2019 was not material.
Supplemental balance sheet information related to leases at March 31, 2019, was as follows:
 
Operating leases
 
Finance leases
 
Total leases
 
(in thousands, except lease term and discount rate)
Right-of-use assets
$
33,806

 
$
57,217

 
$
91,023

 
 
 
 
 
 
Lease liabilities, current (1)
$
10,492

 
$
3,115

 
$
13,607

Lease liabilities, net of current portion
29,283

 
76,512

 
105,795

Total lease liabilities
$
39,775

 
$
79,627

 
$
119,402

 
 
 
 
 
 
Weighted average remaining term (in years)
5.4

 
14.4

 
 
Weighted average discount rate
5.2
%
 
5.4
%
 
 
(1) 
Included in the line “Accrued expenses and other current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
Supplemental cash flow information related to leases for the three months ended March 31, 2019, was as follows, in thousands:
Cash payments for lease liabilities within operating activities:
 
Operating leases
$
3,658

Finance leases
$
1,045


At March 31, 2019, future maturities of lease liabilities due under these lease agreements were as follows for the years ending December 31, in thousands:
 
Operating leases
 
Finance leases
 
Total leases
2019
$
12,240

 
$
7,325

 
$
19,565

2020
7,905

 
7,425

 
15,330

2021
6,873

 
7,530

 
14,403

2022
5,668

 
7,635

 
13,303

2023
5,126

 
7,740

 
12,866

Thereafter
8,009

 
78,087

 
86,096

Total undiscounted lease payments
45,821

 
115,742

 
161,563

Present value adjustment
(6,046
)
 
(36,115
)
 
(42,161
)
Present value of lease payments
$
39,775

 
$
79,627

 
$
119,402