RealPage, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2020

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, which is classified as a finance 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, 2020 and 2019 were as follows:



	Three Months Ended March 31,		Three Months Ended March 31,
	2020		2019
	(in thousands)
Operating lease cost	$	4,472	$	3,486

Finance lease cost:
Depreciation of finance lease asset	$	992	$	992
Interest on lease liabilities	1,030		1,045
Total finance lease cost	$	2,022	2,037

Rent expense for short-term leases for the three months ended March 31, 2020 and 2019 was not material.

Supplemental balance sheet information related to leases at March 31, 2020, was as follows:



	Operating leases			Finance leases			Total leases
	(in thousands, except lease term and discount rate)
Right-of-use assets	$	65,493		$	53,248		$	118,741

Lease liabilities, current ⁽¹⁾	$	13,052		$	3,407		$	16,459
Lease liabilities, net of current portion	58,573			72,526			131,099
Total lease liabilities	$	71,625		$	75,933		$	147,558

Weighted average remaining term (in years)	5.8			13.4
Weighted average discount rate	4.8		%	5.4		%


⁽¹⁾	Included in the line “Accrued expenses and other current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

Supplemental balance sheet information related to leases at December 31, 2019, was as follows:



	Operating leases			Finance leases			Total leases
	(in thousands, except lease term and discount rate)
Right-of-use assets	$	67,700		$	54,241		$	121,941

Lease liabilities, current ⁽¹⁾	$	12,873		$	3,254		$	16,127
Lease liabilities, net of current portion	59,822			73,491			133,313
Total lease liabilities	$	72,695		$	76,745		$	149,440

Weighted average remaining term (in years)	6.1			13.7
Weighted average discount rate	4.8		%	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, 2020 and 2019 was as follows, in thousands:



	Three Months Ended March 31,		Three Months Ended March 31,
	2020		2019
Cash payments for lease liabilities within operating activities:
Operating leases	$	3,048	$	3,658
Finance leases	$	1,030	$	1,045
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	1,392	$	—

At March 31, 2020, 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
2020	$	12,613		$	4,979		$	17,592
2021	15,690			7,504			23,194
2022	13,695			7,609			21,304
2023	11,943			7,714			19,657
2024	9,941			7,819			17,760
Thereafter	18,471			72,214			90,685
Total undiscounted lease payments	82,353			107,839			190,192
Present value adjustment	(10,728		)	(31,906		)	(42,634		)
Present value of lease payments	$	71,625		$	75,933		$	147,558