Leases

12 Months Ended

Dec. 31, 2023

The Company and its subsidiaries lease their facilities under various operating lease agreements. The Company's headquarters in New York operates under a lease agreement that expires in November 2025. The Company's Israel based operations occupy offices with lease expiration dates that extend through July 2026. The Company also entered into a lease agreement to lease an office space in Scottsdale, Arizona that expires in November 2024. The Company also occupies an office space in Amsterdam, Netherlands with lease that expires in February 2027. As part of the Metromile Acquisition (Note 5), the Company acquired two lease agreements for an office space in San Francisco, California that expires in November 2030 and an office space in Tempe, Arizona that expires in October 2024.

The Company subleased two floors of its New York office space beginning September 2023 through November 2025, and are classified as operating leases. As of December 31, 2023, the Company recognized $0.4 million of sublease income which is presented under “Commission and other income” in the consolidated statements of operations. As a result of the sublease, the Company evaluated our RoU asset associated with the original lease for impairment, using the undiscounted cash flows from the sublease. There were no impairment recognized related to the New York office sublease for the year ended December 31, 2023.

The Company subleased its San Francisco office space to third parties beginning November 2023 through November 2026, and is classified as an operating lease. As of December 31, 2023, the Company recognized $0.2 million of sublease income which is presented under “Commission and other income” in the consolidated statements of operations. The Company also recorded an impairment charge related to this sublease in San Francisco in the amount of $3.7 million which reduced the carrying value of RoU assets and the related leasehold improvements. The impairment charge is presented under “General and administrative expenses” in the consolidated statement of operations and comprehensive income. The Company estimated the fair value of the RoU asset based on the net present value of the sublease rental income during the sublease term.

Operating lease expense under ASC 842 for leased facilities is presented below:


	December 31,
	2023		2022
Operating lease expense	$	8.1	$	7.0
Short term lease expense	0.1		0.2
Variable lease cost	0.7		0.2
	$	8.9	$	7.4

Operating lease expense is included within continuing operations in the consolidated statements of operations and comprehensive loss.

Supplemental cash flow information related to operating leases is as follows ($ in millions):


	December 31,
	2023		2022
Operating cash outflow from operating leases	$	8.7	$	6.5
Operating cash inflow from operating subleases	$	0.4	$	—
RoU assets obtained in exchange for lease liabilities for operating leases	$	—	$	11.0

Weighted-average remaining lease term and discount rate are as follows:


	December 31,
	2023		2022
Weighted-average remaining lease term (in years)	4.0		4.7
Weighted-average discount rate	6.09	%	4.62	%

Maturities of operating lease liabilities as of December 31, 2023 is as follows ($ in millions):


2024	$	10.1
2025	9.0
2026	4.5
2027	2.6
2028	2.7
Thereafter	3.4
Total	$	32.3