Leases

6 Months Ended

Jun. 30, 2022

5. Leases

The Company adopted Topic 842 as of January 1, 2022 using the modified retrospective approach.

The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2026.

During the three months ended June 30, 2022, the Company recorded operating lease costs of $1.7 million and variable lease costs of $0.2 million. During the six months ended June 30, 2022, the Company recorded operating lease costs of $3.4 million and variable lease costs of $0.4 million. During the three and six months ended June 30, 2022, the Company recognized an immaterial amount for short term lease expense and no sublease income, and did not enter into any new leases with a term exceeding 12 months.

The following tables set forth a summary of information pertaining to the Company’s operating leases (dollar amounts in thousands):


	Six Months Ended June 30, 2022
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives	$	3,044

	As of June 30, 2022
Weighted average remaining term (years)	2.5
Weighted average discount rate	3.8		%

Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year as of June 30, 2022, were as follows (in thousands):


Remainder of 2022	$	3,717
2023	7,061
2024	5,743
2025	809
2026	410
Gross lease payments	17,740
Less imputed interest	(867)
Present value of operating lease liabilities	$	16,873

Future minimum lease payments as measured under Topic 840 for noncancellable operating leases as of December 31, 2021, were as follows (in thousands):


2022	$	7,826
2023	7,212
2024	5,921
2025	809
2026	410
Total lease commitments	$	22,178

Rent expense for operating leases under Topic 840 was $1.4 million for the three months ended June 30, 2021, and $2.8 million for the six months ended June 30, 2021.