Leases

9 Months Ended

Sep. 30, 2022

10. Leases

The Company leases certain equipment and facilities under operating leases which expire at various dates through 2028. The Company’s operating lease costs were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Operating lease cost (gross lease expense)	$	2,334	$	3,249	$	8,527	$	9,892
Variable lease costs		1,093		1,339		3,563		3,491
Sublease income (including reimbursed expenses)		473		1,218		1,780		3,782

During each of the three and nine months ended September 30, 2022 and 2021, the Company’s short-term lease costs were nominal.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The weighted average remaining operating lease term was 6.0 years and 6.7 years as of September 30, 2022 and December 31, 2021, respectively.

The weighted average discount rate used to estimate operating lease liabilities was 7.0% and 7.5% as of September 30, 2022 and December 31, 2021, respectively.

In May 2022, in connection with the March 2022 Restructuring Plan, the Company executed a partial termination to reduce the leased space for its San Mateo, CA headquarters. The amendment resulted in the reduction in total future undiscounted fixed minimum lease cost payments and associated right-of-use assets. See Note 15 for additional information.

As of September 30, 2022, maturities of operating lease liabilities and sublease income, by year are as follows:


(in thousands)	Operating Lease Payments		Sublease Income
Remainder of 2022	$	2,813	$	(458	)
2023		11,074		(1,781	)
2024		9,579		(372	)
2025		9,233		—
2026		9,505		—
Thereafter		19,140		—
Gross lease payments (income)	$	61,344	$	(2,611	)
Less: Imputed interest		11,445
Less: Tenant improvement receivables		412
Total operating lease liabilities	$	49,487