Leases

12 Months Ended

Dec. 31, 2024

We lease our corporate headquarters, which includes approximately 151,000 square feet of executive offices, R&D, and business operations, in Hayward, California. We also lease approximately 109,000 square feet of office space in Brisbane, California. Both leases: are non-cancelable; extend through 2031; have two options, at our sole discretion, to extend each lease term for a period of eight years; and require monthly lease payments that are subject to annual increases throughout the lease term.

Subleases

We subleased approximately 31,000 square feet of our Brisbane office to a third-party which commenced in October 2023. This sublease included a tenant improvement allowance to be paid by us of $9 million, which was fully paid at December 31, 2024. This sublease is non-cancelable and extends through 2028, with the sublessee having options to extend the lease term.

We have also subleased approximately 19,000 square feet of our Brisbane office to a third-party which commenced in December 2024. This sublease is non-cancelable and extends through 2031.

We will receive payments from our subleases of approximately $3 million per year through 2028, which is then reduced to approximately $1 million per year through 2031.

Income from our subleases is recognized on a straight-line basis as reduction of rent expense within G&A. For the year ended December 31, 2024, we recorded gross sublease income totaling $3 million.

Operating leases

At December 31, 2024 and 2023, our lease portfolio had a weighted average remaining term of 7 years and 8 years, respectively, and a weighted average discount rate of 5.2% for both periods.

The following table summarizes information related to our leases, all of which are classified as operating (in millions):


	As of December 31,
Location in Consolidated Balance Sheets	2024		2023
Assets:
Other noncurrent assets - right-of-use assets	$	65	$	92
Liabilities:
Other current liabilities - net current operating lease liabilities	$	12	$	11
Other noncurrent liabilities - noncurrent operating lease liabilities	$	99	$	110

In the first quarter of 2024, we evaluated our plans for a portion of our office space that we expected to sublease, and identified indicators of impairment to certain right-of-use assets associated with the leased space where the asset value was determined to be non-recoverable based upon a discounted cash flow analysis, resulting in an impairment charge of $20 million for the year ended December 31, 2024.

For the years ended December 31, 2024, 2023 and 2022, we incurred lease expense of $17 million, $18 million, and $18 million, respectively. Lease costs include rent expense, which consists primarily of our proportionate share of operating expenses, property taxes, and insurance which we have elected to include in lease costs.

The following table summarizes our cash and non-cash information related to our operating leases (in millions):


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in measurement of lease liabilities	$	17	$	15	$	11
Cash received from tenant improvement allowances	$	—	$	9	$	8
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	—	$	3
Recognition of tenant improvement allowance receivable included in Other current liabilities	$	—	$	4	$	6

The following table summarizes our future minimum lease payments at December 31, 2024 (in millions):


Year Ending December 31,	Operating Leases
2025	$	17
2026	18
2027	18
2028	19
2029	19
Thereafter	42
Total undiscounted future minimum lease payments	$	133
Less: Imputed interest	(22)
Total present value of lease liabilities	$	111

As of December 31, 2024, we have provided deposits for letters of credit totaling $3 million to secure our obligations under our leases, which are included in Other noncurrent assets on the Consolidated Balance Sheets.