Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases LeasesOur 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 and six months ended June 30, 2020 and 2019 were as follows:
  Three Months Ended June 30, Six Months Ended June 30,
  2020 2019 2020 2019
(in thousands)
Operating lease cost $ 4,201    $ 3,477    $ 8,673    $ 6,963   
Finance lease cost:
Depreciation of finance lease asset $ 992    $ 992    $ 1,984    $ 1,984   
Interest on lease liabilities 1,019    1,061    2,048    2,106   
Total finance lease cost $ 2,011    $ 2,053    $ 4,032    $ 4,090   

Rent expense for short-term leases for the three and six months ended June 30, 2020 and 2019 was not material.
Supplemental balance sheet information related to leases at June 30, 2020, was as follows:
Operating leases Finance leases Total leases
(in thousands, except lease term and discount rate)
Right-of-use assets $ 62,116    $ 52,256    $ 114,372   
Lease liabilities, current (1)
$ 12,982    $ 3,480    $ 16,462   
Lease liabilities, net of current portion 54,066    71,631    125,697   
Total lease liabilities $ 67,048    $ 75,111    $ 142,159   
Weighted average remaining term (in years) 5.6 13.2
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 six months ended June 30, 2020 and 2019 was as follows, in thousands:
Six Months Ended June 30, Six Months Ended June 30,
2020 2019
Cash payments for lease liabilities within operating activities:
Operating leases $ 8,734    $ 7,809   
Finance leases $ 2,048    $ 2,106   
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations $ 1,392    $ 12,029   

At June 30, 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 $ 6,981    $ 3,138    $ 10,119   
2021 15,735    7,504    23,239   
2022 13,745    7,609    21,354   
2023 11,994    7,714    19,708   
2024 9,988    7,819    17,807   
Thereafter 18,543    72,214    90,757   
Total undiscounted lease payments 76,986    105,998    182,984   
Present value adjustment (9,938)   (30,887)   (40,825)  
Present value of lease payments $ 67,048    $ 75,111    $ 142,159   
Leases LeasesOur 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 and six months ended June 30, 2020 and 2019 were as follows:
  Three Months Ended June 30, Six Months Ended June 30,
  2020 2019 2020 2019
(in thousands)
Operating lease cost $ 4,201    $ 3,477    $ 8,673    $ 6,963   
Finance lease cost:
Depreciation of finance lease asset $ 992    $ 992    $ 1,984    $ 1,984   
Interest on lease liabilities 1,019    1,061    2,048    2,106   
Total finance lease cost $ 2,011    $ 2,053    $ 4,032    $ 4,090   

Rent expense for short-term leases for the three and six months ended June 30, 2020 and 2019 was not material.
Supplemental balance sheet information related to leases at June 30, 2020, was as follows:
Operating leases Finance leases Total leases
(in thousands, except lease term and discount rate)
Right-of-use assets $ 62,116    $ 52,256    $ 114,372   
Lease liabilities, current (1)
$ 12,982    $ 3,480    $ 16,462   
Lease liabilities, net of current portion 54,066    71,631    125,697   
Total lease liabilities $ 67,048    $ 75,111    $ 142,159   
Weighted average remaining term (in years) 5.6 13.2
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 six months ended June 30, 2020 and 2019 was as follows, in thousands:
Six Months Ended June 30, Six Months Ended June 30,
2020 2019
Cash payments for lease liabilities within operating activities:
Operating leases $ 8,734    $ 7,809   
Finance leases $ 2,048    $ 2,106   
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations $ 1,392    $ 12,029   

At June 30, 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 $ 6,981    $ 3,138    $ 10,119   
2021 15,735    7,504    23,239   
2022 13,745    7,609    21,354   
2023 11,994    7,714    19,708   
2024 9,988    7,819    17,807   
Thereafter 18,543    72,214    90,757   
Total undiscounted lease payments 76,986    105,998    182,984   
Present value adjustment (9,938)   (30,887)   (40,825)  
Present value of lease payments $ 67,048    $ 75,111    $ 142,159