Leases

12 Months Ended

Dec. 31, 2021

LeasesOn January 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition method applied at the effective date of the standard. The Company has elected to utilize the package of practical expedients at the time of adoption, which allows the Company to (1) not reassess whether any expired or existing contracts are or contain leases, (2) not reassess the lease classification of any expired or existing leases, and (3) not reassess initial direct costs for any existing leases. The Company also has elected to utilize the short-term lease recognition exemption and, for those leases that qualified, the Company did not recognize right-of-use (“ROU”) assets or lease liabilities.

Lease Costs

For the years ended December 31, 2021, 2020, and 2019, the Company recorded operating lease costs of corporate offices, excluding subleases, that were included in the consolidated statements of comprehensive income (loss) as follows (in thousands):


Operating lease costs recorded within:	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
Cost of revenue	$	62	$	489	$	740
Sales and marketing	1,356		1,680		1,741
Technology and development	2,082		2,420		2,462
General and administrative	2,793		2,887		3,597
Total operating lease costs	$	6,293	$	7,476	$	8,540

The Company did not include short term or variable lease costs in the table above as these amounts were immaterial. The Company made cash payments of $7.2 million, $8.3 million and $9.4 million for the years ended December 31, 2021, 2020, and 2019, respectively, all of which were included in cash flows from operating activities within the consolidated statements of cash flows. The Company’s operating leases have a weighted average remaining lease term of 5.4 years and weighted average discount rate of 5.8%. For its subleases, the Company recorded contra rent expense of $1.1 million, $1.2 million and $2.0 million for the years ended December 31, 2021, 2020, and 2019, respectively.

The Company recognized ROU asset group impairment charges of $1.7 million and $2.1 million for the years ended December 31, 2021 and 2020, respectively, reducing the carrying value of the related lease assets to its estimated fair value. Fair value was estimated using an income approach based on management’s forecast of future cash flows expected to be derived based on current sublease market rent. The impairment charge is included in general and administrative expenses in the consolidated statements of comprehensive income (loss).

The existing operating leases have remaining lease terms ranging from 3.0 to 8.1 years. Certain lease agreements contain options to renew, with renewal terms that generally extend the lease terms by 3 to 5 years for each option.

Lease Commitments

Future undiscounted lease payments for the Company’s operating lease liabilities, a reconciliation of these payments to its operating lease liabilities, and related sublease income at December 31, 2021 are as follows (in thousands):


Years ended December 31,
2022	$	6,799
2023	7,628
2024	7,860
2025	6,083
2026	2,820
Thereafter	5,799
Total lease payments	$	36,989
Less: imputed interest	(5,436)
Total lease liabilities (discounted)	$	31,553


Year ended December 31,	Sublease Income
2022	$	1,553
2023	1,864
2024	1,932
2025	1,540
2026	652
Thereafter	56
Total sublease income	$	7,597