Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

LeasesOperating and finance lease assets and liabilities are as follows:

(in thousands)	Classification	September 30, 2021		December 31, 2020
Assets
Operating	Other long-term assets	$	8,287	$	18,441
Finance	Property, plant and equipment, net	508		525
Total leased assets		$	8,795	$	18,966
Liabilities
Current
Operating	Accrued expenses and other liabilities	$	1,397	$	1,164
Finance	Current portion of long-term debt and other borrowings	356		249
Noncurrent
Operating	Other long-term liabilities	16,391		17,501
Finance	Long-term debt, net and other borrowings	262		246
Total leased liabilities		$	18,406	$	19,160

The Company leases office space in the World Trade Center in New York City. In the third quarter of 2021, the Company negotiated a sublease agreement with an unrelated third party that was signed on October 11, 2021 (the “Sublease”) and has a term of nine years, which represents the remaining term of the WTC lease. Both the WTC lease and the Sublease are classified by the Company as operating leases. As a result of the negotiations of the Sublease, the Company determined that an impairment triggering event had occurred. Accordingly, the Company performed an undiscounted cash flow analysis related to the asset group as of September 30, 2021. Based on the undiscounted cash flow analysis, the Company determined that the asset group, including the ROU asset, had net carrying values that exceeded their estimated undiscounted future cash flows. The Company then estimated the fair value of the asset group based on its discounted cash flows. The carrying value exceeded the fair value and, as a result, the Company recorded a non-cash impairment of $9.5 million for the three and nine months ended September 30, 2021 in general and administrative expenses in the condensed consolidated statements of operations.

Leases

LeasesOperating and finance lease assets and liabilities are as follows:

(in thousands)	Classification	September 30, 2021		December 31, 2020
Assets
Operating	Other long-term assets	$	8,287	$	18,441
Finance	Property, plant and equipment, net	508		525
Total leased assets		$	8,795	$	18,966
Liabilities
Current
Operating	Accrued expenses and other liabilities	$	1,397	$	1,164
Finance	Current portion of long-term debt and other borrowings	356		249
Noncurrent
Operating	Other long-term liabilities	16,391		17,501
Finance	Long-term debt, net and other borrowings	262		246
Total leased liabilities		$	18,406	$	19,160

The Company leases office space in the World Trade Center in New York City. In the third quarter of 2021, the Company negotiated a sublease agreement with an unrelated third party that was signed on October 11, 2021 (the “Sublease”) and has a term of nine years, which represents the remaining term of the WTC lease. Both the WTC lease and the Sublease are classified by the Company as operating leases. As a result of the negotiations of the Sublease, the Company determined that an impairment triggering event had occurred. Accordingly, the Company performed an undiscounted cash flow analysis related to the asset group as of September 30, 2021. Based on the undiscounted cash flow analysis, the Company determined that the asset group, including the ROU asset, had net carrying values that exceeded their estimated undiscounted future cash flows. The Company then estimated the fair value of the asset group based on its discounted cash flows. The carrying value exceeded the fair value and, as a result, the Company recorded a non-cash impairment of $9.5 million for the three and nine months ended September 30, 2021 in general and administrative expenses in the condensed consolidated statements of operations.