The Company leases real estate in the form of office space facilities. Generally, the term for real estate leases ranges from 1 to 9 years at inception of the contract. Some real estate leases include options to renew that can extend the original term by 5 to 10 years.

Operating lease costs are allocated according to headcount to cost of revenue, sales and marketing, product development and general and administrative expenses in the consolidated statements of operations. As of December 31, 2022, the Company does not have any finance leases.

During the first quarter of 2022, the Company gave notice of its intent to extend one of its office lease facilities for an additional five-year period and the extension was accounted for as a lease modification under ASC 842. Accordingly, the Company recorded a right-of-use asset and corresponding operating lease liability of $6.0 million, which represented the present value of the expected future minimum lease payments. During the quarter ended June 30, 2022, the Company’s executive leadership team approved a program to exit the office lease facility and signed an agreement with the landlord to withdraw the Company’s exercise of the option to extend. As a result, the lease terminated on December 31, 2022. This was accounted for as a lease modification under ASC 842 and the Company reduced the right-of-use asset by $6.0 million in the second quarter of 2022. The Company ceased use of the office facility during the same quarter and accordingly recorded an impairment charge of $0.7 million, which represented the remaining carrying value of the right-of-use asset as of June 30, 2022.

Also during the second quarter of 2022, the Company executed a plan to exit one of its other office facilities by exercising an early termination clause, which was accounted for as a lease modification under ASC 842. The Company ceased use of the office facility during the second quarter and accordingly recorded a $0.2 million impairment charge, which represented the remaining carrying value of the right-of-use asset as of June 30, 2022.

The Company recorded the following lease costs for the year ended December 31, 2022:


(in thousands)	Year Ended December 31, 2022
Lease Cost
Capitalized operating lease cost	$	2,676
Variable lease cost		1
Total lease cost	$	2,677


(in thousands)
Supplemental Cash Flow and Other Information
Cash paid for amounts included in measurement of lease liabilities and capitalized operating leases:
Operating cash flows	$	3,145

Right-of-use assets obtained in exchange for lease liabilities:
Capitalized operating leases	$	982

Lease term and discount rate consisted of the following at December 31, 2022:


	December 31, 2022
Weighted-average remaining lease term (in years):
Capitalized operating leases		5.78

Weighted-average discount rate:
Capitalized operating leases		4.2	%

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of December 31, 2022.


(in thousands)	Capitalized Operating Lease
2023	$	1,960
2024		2,344
2025		2,143
2026		2,071
2027		2,112
Thereafter		2,360
	$	12,990

Imputed interest		1,500
Operating lease liability balance at December 31, 2022	$	11,490

Future aggregate minimum annual lease payments as of December 31, 2021 under the previous lease accounting standard were as follows:


(in thousands)	Operating Lease
2023	$	3,120
2024		1,895
2025		2,282
2026		2,174
2027		2,165
Thereafter		4,805
	$	16,441

Total rent expense, which was allocated according to headcount to cost of revenue, sales and marketing, product development and general and administrative expenses in the consolidated statements of operations, was $2.4 million, $2.8 million, and $1.8 million for the years ended December 31, 2022, 2021, and 2020, respectively.

As of December 31, 2022, the Company has entered into one lease agreement for an office facility in Sweden for a term of four years that has not yet commenced. This lease will require lease payments over the term of approximately $1.8 million.