Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

Operating Leases

The Corporation leases office space in New Jersey, Minnesota, Tennessee, Georgia, Florida, California, and Hong Kong under non-cancelable operating leases. At December 31, 2021, the remaining terms of the operating leases were between four months and 75 months, and certain lease agreements contain provisions for future rent increases. For each lease the Corporation recorded a right-of-use (ROU) asset and lease liability at the earlier of the ASC 842 effective date or lease commencement date. The Corporation utilizes the straight-line method of recognizing lease expense. However, the Corporation is required to pay certain variable executory costs including common area maintenance, real estate taxes, and insurance that are expensed as incurred. These variable costs are excluded from the measurement of leases. Certain of the Corporation’s leases include options to renew, with renewal terms that can extend the lease term. The exercise of lease renewal options is at the Corporation’s sole discretion. The ability to terminate a lease is determined by the applicable lease terms and conditions. The Corporation is not reasonably certain that it will exercise the renewal or termination options. Therefore, these options are not recognized as part of the ROU asset and lease liability.

The Corporation subleases certain of its leases to third parties for which it receives rental income to manage occupancy costs. These subleases are classified as operating leases.

Mallory Green Lease:

On September 22, 2021, the Corporation entered into an agreement to lease office space for its new corporate headquarters in Franklin, Tennessee, for a period of 37 months.

Montgomery Lease:

From May 2020 through April 9, 2021, the Corporation was in default with respect to its agreement to lease office space in Jersey City, New Jersey (the "Montgomery Lease"), for not paying rent owed to the lessor. The Corporation accrued for all interest owed and began reducing its security deposit asset in lieu of recording rental payments. On April 9, 2021, the Corporation replenished its security deposit and, therefore, was no longer in default with respect to the Montgomery Lease.

Summary of Lease Costs Recognized Under ASC 842:

The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Corporation's operating leases for the years ended December 31, 2021, 2020, and 2019:

Years ended December 31,	2021			2020			2019
	(in thousands)
Operating lease cost	$	4,515		$	4,533		$	4,552
Variable lease cost	515			632			654
Short-term lease cost	45			20			58
Sublease income	(2,727)			(3,098)			(989)
Total lease cost	$	2,348		$	2,087		$	4,275
Other information
Cash paid for amounts included in the measurement of lease liabilities	$	5,248		$	4,979		$	4,804
Weighted-average remaining lease term	5.0 years			4.4 years			4.8 years
Weighted-average discount rate	10.36		%	10.17		%	10.05		%

The following table summarizes the Corporation's future lease payments for non-cancelable operating lease liabilities as of December 31, 2021:

	(in thousands)
2022	$	3,164
2023	1,665
2024	1,319
2025	1,170
2026	1,155
Thereafter	1,486
Total lease payments	9,959
Less: imputed interest	(2,070)
Total	$	7,889