Leases

3 Months Ended

Mar. 31, 2023

Note 5 — Leases

All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease right-of-use (“ROU”) assets and non-current operating lease liabilities are included as individual line items on the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets and are not material.

The components of lease expense were as follows (in thousands):


	For the Three Months Ended March 31,
	2023			2022
Operating lease cost	$	3,314		$	3,652
Short-term lease cost		261			137
Variable lease cost		785			1,550
Sublease income		(131	)		(192	)
Total lease cost	$	4,229		$	5,147

Additional lease information is summarized in the following table (in thousands, except lease term and discount rate):


	For the Three Months Ended March 31,
	2023			2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,374		$	2,861
Operating lease ROU assets obtained in exchange for lease obligations	$	1,323		$	—
Weighted-average remaining lease term - operating leases (years)		4.9			5.7
Weighted-average discount rate - operating leases		4.3	%		4.3	%

Future minimum lease payments under non-cancelable leases and estimated future sublease cash receipts from non-cancelable arrangements as of March 31, 2023 are as follows (in thousands):


	Operating Lease			Sublease
	Payments			Cash Receipts
2023 (remainder)	$	12,532		$	457
2024		16,563			625
2025		14,485			—
2026		12,474			—
2027		5,680			—
Thereafter		8,817			—
Total lease payments and estimated sublease cash receipts		70,551		$	1,082
Less imputed interest		(8,045	)
Present value of lease liabilities	$	62,506

Lease balances as of March 31, 2023 are as follows (in thousands):


Operating lease ROU assets	$	48,565

Short-term operating lease liabilities (1)	$	13,985
Non-current operating lease liabilities		48,521
Total operating lease liabilities	$	62,506

(1)

Included in accrued expenses and other current liabilities on the Consolidated Balance Sheets.

The Company’s leases do not contain residual value guarantees, material restrictions, or covenants.

During the three months ended March 31, 2023, the Company recorded a $0.4 million ROU asset impairment related to closing one floor of its offices located at 150 Spear Street, San Francisco, California. The impairment is included in restructuring costs in the Consolidated Statements of Operations. As a result of the impairment, the ROU asset was required to be recorded at its estimated fair value as a Level 3 non-financial asset. The fair value of the asset group was determined using a discounted cash flow model, which required the use of estimates, including projected cash flows for the related asset, the selection of a discount rate used in the model, and regional real estate industry data.