Leases

12 Months Ended

Dec. 31, 2021

The Company has entered into operating lease agreements for certain facilities and equipment. The Company determines at inception if an arrangement is a lease or contains a lease. As of December 31, 2021, the Company’s leases have remaining terms of approximately one to four years, which may include options to extend. The Company does not have lease agreements with residual value guarantees or material restrictive covenants. Variable lease payments included in the lease agreements are immaterial. Leases with terms of twelve months or less at inception are excluded from the calculation of operating lease right-of-use assets, the current portion of long-term lease liability, and the long-term lease liability.

During the year ended December 31, 2021, the Company recorded operating lease right-of-use asset impairment charges of $3.6 million due to the Company's decision to operate in a "Remote First" working environment and consolidate operations at certain locations. These impairment charges were recorded in the Thryv International segment.

During the year ended December 31, 2020, the Company recorded operating lease right-of-use asset impairment charges of $20.7 million and leasehold improvements and furniture and fixtures impairment charges of $4.2 million due to the Company's decision to operate in a "Remote First" working environment and consolidate operations at certain locations. Approximately $22.0 million and $2.9 million of the impairment charge was recorded in the Marketing Services and SaaS segments, respectively.

During the year ended December 31, 2019, the Company recorded operating lease right-of-use asset impairment charges of $5.7 million related to consolidating operations at certain locations. Approximately $5.2 million and $0.5 million of the impairment charge was recorded in the Marketing Services and SaaS segments, respectively.

These operating lease right-of-use assets were remeasured at fair value based upon the discounted cash flows of estimated sublease income using market participant assumptions. These fair value measurements are considered Level 3.

The following table sets forth components of lease cost related to the Company's operating leases:


	Years Ended December 31,
(in thousands)	2021		2020		2019
Operating lease cost	$	7,684	$	8,018	$	12,484
Short-term lease cost	—		53		1,144
Sublease income	(1,954)		(366)		(680)
Total lease cost	$	5,730	$	7,705	$	12,948

The following table sets forth supplemental balance sheet information related to the Company's operating leases:


(in thousands)	December 31, 2021		December 31, 2020
Assets
Operating lease right-of-use assets, net (1)	$	9,517	$	9,202

Liabilities
Current portion of long-term lease liability (2)	11,785		646
Long-term lease liability (3)	24,330		24,552
Total operating lease liability	$	36,115	$	25,198

(1)Operating lease right-of-use assets, net, are included in Other assets on the Company's consolidated balance sheet.

(2)The current portion of long-term lease liability is included in Other current liabilities on the Company's consolidated balance sheet.

(3)The long-term lease liability is included in Other liabilities on the Company's consolidated balance sheet.

The following table sets forth supplemental cash flow information related to the Company's operating leases:


	Years Ended December 31,
(in thousands)	2021		2020		2019
Cash flows from operating activities
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	14,941	$	8,713	$	16,733

Supplemental lease cash flow disclosure
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	1,423	$	54,667

The following table sets forth additional information related to the Company's operating leases:


	Years Ended December 31,
	2021		2020		2019
Weighted-average remaining lease term - Operating leases (in years)	3.1		4.6		4.9
Weighted-average discount rate - Operating leases	9.2	%	9.1	%	9.0	%

The following table sets forth, by year, the maturities of operating lease liabilities as of December 31, 2021:


(in thousands)	Operating Leases
2022	$	14,491
2023	11,927
2024	8,517
2025	6,658
2026	—
Thereafter	—
Total undiscounted lease payments	$	41,593
Less: imputed interest	5,478
Present value of operating lease liability	$	36,115