Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.1
Leases
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases  Leases
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


Leases  Leases
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