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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Operating Lease Commitments
The Company leases office space under non-cancellable operating leases for its corporate headquarters in Austin, Texas in two adjacent buildings under separate lease agreements. Pursuant to the first of which the Company leases office space with an initial term that expires on April 30, 2028, with the option to extend the lease for an additional ten-year term, and pursuant to the second of which the Company leases office space with lease terms of approximately ten years, with the options to extend the leases on the second building. The Company also leases office space in U.S. cities located in Nebraska, Iowa, Georgia, North Carolina, California, Texas and Minnesota. Internationally the Company leases offices in India, Australia and the United Kingdom.
During the year ended December 31, 2021, through the Company's regular assessment process and vacating of facilities, unoccupied lease charges of $2.0 million were recorded for facilities in Georgia, Texas, North Carolina and Nebraska for the related contractual lease payments and fees, less sublease income. During the year ended December 31, 2020, the Company vacated facilities in California, Texas, and a portion of its facilities in North Carolina and recorded unoccupied lease charges of $2.2 million for the remaining contractual lease payments and related fees, less estimated sublease income. During the year ended December 31, 2019, the Company vacated one of its Georgia facilities and recorded an unoccupied lease charge of $0.4 million for the remaining contractual lease payments and related fees, less estimated sublease income. The lease liabilities related to the subleases that are expected to be paid during the succeeding twelve-month period of $1.3 million are recorded in accrued liabilities, and the remaining portion of the associated liability of $1.5 million is recorded in other long-term liabilities on the accompanying consolidated balance sheet at December 31, 2021.
The Company believes its current facilities will be adequate for its needs for the current term. Rent expense under operating leases was $7.4 million, $6.6 million and $5.3 million for the years ended December 31, 2021, 2020 and 2019, respectively.
The components of lease costs, lease term and discount rate as of December 31 were as follows:
Operating Leases
202120202019
Lease expense:
Operating lease expense$10,101 $8,874 $2,289 
Sublease income(1,047)(691)(157)
Total lease expense $9,054 $8,183 $2,132 
Other information:
Cash paid for operating lease liabilities$10,743 $9,326 $2,011 
Non-cash acquisition of property and equipment through tenant improvement allowance$9,692 $— $— 
Right-of-use assets obtained in exchange for operating lease liabilities for the years ended December 31, 2021, 2020 and 2019
$23,310 $3,646 $7,097 
Weighted-average remaining lease term - operating leases8.2 years6.3 years6.8 years
Weighted-average discount rate - operating leases5.2 %5.5 %5.5 %
Future minimum payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2021 were as follows:
Operating Leases
Year Ended December 31,
2022$12,877 
202312,279 
202411,147 
202510,204 
20269,169 
Thereafter17,561 
Total lease payments$73,237 
Less: present value discount(2,862)
Present value of lease liabilities$70,375 
Contractual Commitments
The Company has non-cancelable contractual commitments related to the 2023 Notes, 2025 Notes and the 2026 Notes as well as the related interest. The interest on the 2023 Notes is payable semi-annually on February 15 and August 15 of each year. The interest on the 2025 Notes is payable semi-annually on May 15 and November 15 of each year. The interest on the 2026 Notes is payable semi-annually on June 1 and December 1 of each year. The Company also has non-cancelable contractual commitments for certain third-party products, co-location fees and other product costs. Several of these purchase commitments for third-party products contain both a contractual minimum obligation and a variable obligation based upon usage or other factors which can change on a monthly basis. The estimated amounts for usage and other factors are not included within the table below.
On December 31, 2020, the Company entered into a long-term stadium sponsorship agreement, beginning in 2021 and ending in 2028, which grants the Company exclusive naming rights, sponsorship, signage, advertising and other promotional rights and benefits. The advertising expense for these rights is amortized on a straight-line basis and recorded in sales and marketing expense in the consolidated statements of comprehensive loss. The prepaid commitment balance, net of amortization, is included in prepaid expenses and other current assets in the consolidated balance sheets.
Future minimum contractual commitments that have initial or remaining non-cancelable terms in excess of one year were as follows:
Contractual Commitments
Year Ended December 31,
2022$37,252 
202340,929 
202414,037 
2025359,109 
2026320,936 
Thereafter7,000 
Total commitments$779,263 
Legal Proceedings
From time to time, the Company may become involved in legal proceedings arising in the ordinary course of its business. The Company is not presently a party to any legal proceedings that, if determined adversely to the Company, would have a material adverse effect on the Company.
Gain Contingencies
From time to time the Company may recognize a gain contingency, however, recognition will not occur until cash is received. During the year ended December 31, 2021, the Company received a favorable settlement of an ordinary course dispute and recognized a gain of $0.8 million included in interest and other income in the accompanying consolidated statements of comprehensive loss.
Loss Contingencies
In the ordinary course of business, the Company is subject to loss contingencies that cover a range of matters. An estimated loss from a loss contingency, such as a legal proceeding or claim, is accrued if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.