Leases

12 Months Ended

Dec. 31, 2023

11.

LEASES

The Company leases real estate in the form of office space and data center facilities. Generally, at the inception of the contract, the term for real estate leases ranges from 1 to 17 years and the term for equipment leases is 1 to 3 years. Some real estate leases include options to renew that can extend the original term by 3 to 5 years.

Operating lease costs are included within cost of revenues, exclusive of amortization and impairment of acquired technologies, research and development and general and administrative expenses on the consolidated statements of operations and comprehensive (loss) income. The Company does not have any finance leases.

In December 2022, the Company terminated a corporate office lease which otherwise would have expired in March 2026. In connection with the lease termination, the Company agreed to a termination fee in the amount of $3.8 million, which released the Company from all future minimum lease payments and variable leases costs related to this facility. As of the termination date, the Company derecognized the operating lease asset and operating lease liability and recognized a loss on lease termination of $3.1 million, included within general and administrative expenses in the consolidated statement of operations and comprehensive (loss) income.

The components of lease expense for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


	December 31,
	2023		2022		2021
Operating lease costs	$	5,958	$	12,390	$	16,386
Variable lease costs		3,497		2,319		2,110
Total lease costs	$	9,455	$	14,709	$	18,496

The $3.1 million loss on lease termination is included in operating lease costs for the year ended December 31, 2022.

The lease term and discount rate consisted of the following as of December 31, 2023, 2022 and 2021:


	December 31,
	2023			2022			2021
Weighted-average remaining lease term (years)		12.9			13.6			12.9
Weighted-average discount rate		6.5	%		6.4	%		6.3	%

Supplemental cash flow and other information related to leases for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


	December 31,
	2023		2022		2021
Cash payments for operating leases	$	5,706	$	11,933	$	11,403
Operating lease assets obtained in exchange for lease liabilities		—		2,825		2,876

The $3.8 million lease termination fee is included in the cash payments for operating leases for the year ended December 31, 2022.

The table below reconciles the undiscounted future minimum lease payments (in thousands) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheet as of December 31, 2023.


Years Ending December 31:
2024		7,016
2025		7,178
2026		7,205
2027		5,403
2028		6,465
Thereafter		51,027
Total lease payments		84,294
Less: Interest		(26,710	)
Total	$	57,584