Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

LeasesThe Company’s operating leases expire between 2027 and 2032 and are primarily for its corporate headquarters in San Mateo, California and Columbus, Ohio, as well as additional office space for origination and servicing operations in Columbus, Ohio. Certain leases have rent abatement, escalating rent payment provisions, lease renewal options, and tenant allowances. Rent expense is recognized on a straight-line basis over the non-cancelable lease term, except when it is reasonably certain that the renewal option will be exercised. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities on our condensed consolidated balance sheets.

In connection with the Company’s lease agreements, letters of credit were issued on behalf of the Company for the benefit of the landlord in an aggregate amount of $3.4 million. The letters of credit are secured by certificates of deposit which are included in restricted cash on the condensed consolidated balance sheets.

As of June 30, 2022, future minimum lease payments are as follows:

	Operating Leases
Remaining 2022	$	6,432
2023	14,741
2024	16,574
2025	17,050
2026	17,546
Thereafter	51,954
Total undiscounted lease payments	124,297
Less: Tenant improvement receivables	(6,568)
Less: Present value adjustment	(17,864)
Operating lease liabilities	$	99,865

The Company did not have any material finance leases in any period presented. The Company’s operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance and parking fees, were included in operating expenses. Rent expense for the Company’s short-term leases was immaterial for the periods presented. Operating lease expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
Rent expense	$	1,467	$	3,945	$	2,995	$	7,877
Variable lease payments	$	362	$	922	$	661	$	1,788

Supplemental cash flow and non-cash information related to the Company’s operating leases was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
Cash paid for amounts included in the measurement of lease liabilities	$	1,075	$	2,707	$	2,132	$	4,770

Supplemental balance sheet information related to the Company’s operating leases was as follows:

	June 30,
	2022
Weighted-average remaining lease term (in years)	7.66
Weighted-average discount rate	3.83%