LEASES

12 Months Ended

Dec. 31, 2022

NOTE 16: LEASES

Our operating leases are comprised of office facilities, with the most significant leases relating to our corporate headquarters in Menlo Park, CA and our office in New York City, NY. Our leases have remaining terms of less than one year to 10 years, and many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. We do not have any finance leases. See Note 6 - Restructuring Activities, for further information relating to impacts on leases due to the April and August 2022 Restructurings.

In 2022, we executed agreements to assign some of our operating leases to third-party assignees who assumed all of our obligations, liabilities, covenants, and conditions under the assigned leases. As a result of these agreements, we derecognized the related right-of-use assets of $28 million and lease liability of $33 million and recognized an immaterial amount of net gain.

Lease assets and liabilities recognized on our consolidated balance sheets were as follows:


		December 31,
(in millions)	Classification	2021		2022
Lease Right-of-use Assets
Operating lease assets	Other non-current assets	$	129	$	92

Lease Liabilities
Current operating lease liabilities	Other current liabilities	22		21
Non-current operating lease liabilities	Other non-current liabilities	129		127
Total lease liabilities		$	151	$	148

Fixed operating lease costs primarily consist of monthly base rent amounts due. Variable operating lease costs primarily relate to common area maintenance, property taxes, insurance, and other operating expenses. The components of lease expense were as follows:


	Year Ended December 31,
(in millions)	2020		2021		2022
Fixed operating lease costs	$	12	$	24	$	33
Variable operating lease costs	3		6		7
Short-term lease costs	1		1		—
Total lease costs	$	16	$	31	$	40

Other information related to our operating leases was as follows:


	December 31,
	2021		2022
Weighted-average remaining lease term	7.29 years		7.59 years
Weighted-average discount rate	6.27	%	6.52	%

Cash flows related to leases were as follows:


	Year Ended December 31,
(in millions)	2020		2021		2022
Operating cash flows:
Payments for operating lease liabilities	$	13	$	6	$	23
Supplemental cash flow data:
Lease liabilities arising from obtaining right-of-use assets	$	26	$	97	$	32

Future minimum lease payments under non-cancellable operating leases (with initial lease terms in excess of one year) as of December 31, 2022 are as follows:


(in millions)
2023	$	30
2024	29
2025	27
2026	19
2027	17
Thereafter	68
Total undiscounted lease payments	190
Less: imputed interest	(40)
Less: lease incentives	(2)

Total lease liabilities	$	148