Leases

3 Months Ended

Mar. 31, 2023

The 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 in Columbus, Ohio and Austin, Texas. 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 March 31, 2023, future minimum lease payments are as follows:


	Operating Leases
Remaining 2023	$	11,426
2024	17,054
2025	17,544
2026	18,055
2027	17,745
Thereafter	34,816
Total undiscounted lease payments	116,640
Less: Tenant improvement receivables	(2,375)
Less: Present value adjustment	(15,215)
Operating lease liabilities	$	99,050

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 March 31,
	2022		2023
Rent expense	$	3,932	$	4,038
Variable lease payments	$	866	$	976

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


	Three Months Ended March 31,
	2022		2023

Cash paid for amounts included in the measurement of lease liabilities	$	2,063	$	3,665

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


									March 31,
									2023
Weighted-average remaining lease term (in years)									7.08
Weighted-average discount rate									3.85%