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Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases

9.

Leases

We account for leases under ASC 842. We maintain lease agreements principally for our office spaces and certain equipment. We maintain two sublease agreements with respect to one of our office locations, each of which continues through the initial term of our master lease agreement.  Such sublease income and payments, while they reduce our rent expense, are not considered in the value of the right-of-use asset or lease liability.  With the exception of two finance leases related to a network server and office equipment, all of our leases are classified as operating leases.  In the aggregate, our leases generally have remaining lease terms of seven to 33 months, some of which include options to extend the lease for additional periods.  Such extension options were not considered in the value of the right-of-use asset or lease liability because it is not probable that we will exercise the options to extend.  If applicable, allocations among lease and non-lease components would be achieved using relative standalone selling prices.

Upon adoption of ASC 842, we determined our estimated discount rate for existing leases as of January 1, 2019 based on the incremental borrowing rate that most closely aligned with the remaining lease term and payment schedule, as provided by our financial institution. The discount rates for leases entered into after January 1, 2019 were determined based on similarly secured borrowings available to us as of lease inception.  

The following table shows the right-of-use assets and lease liabilities recorded on the balance sheet:

 

 

December 31, 2021

 

 

December 31, 2020

 

(In thousands)

 

 

 

 

 

 

 

Right-of-use assets:

 

 

 

 

 

 

 

Operating

$

10,327

 

 

$

17,145

 

Finance

 

368

 

 

 

994

 

Total leased assets

$

10,695

 

 

$

18,139

 

 

 

 

 

 

 

 

 

Lease liabilities:

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

  Operating

$

7,610

 

 

$

7,408

 

  Finance

 

397

 

 

 

644

 

Non-current

 

 

 

 

 

 

 

  Operating

$

3,487

 

 

$

11,097

 

  Finance

 

-

 

 

 

397

 

Total lease liabilities

$

11,494

 

 

$

19,546

 

The following table shows the components of lease expense:

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

(In thousands)

2021

 

 

2020

 

Finance lease cost:

 

 

 

 

 

 

 

Amortization of leased assets

$

626

 

 

$

686

 

Interest of lease liabilities

 

42

 

 

 

86

 

Operating lease cost

 

7,578

 

 

 

7,872

 

Total lease cost before subleases

$

8,246

 

 

$

8,644

 

Sublease income

 

(5,377

)

 

 

(5,452

)

Total lease cost, net

$

2,869

 

 

$

3,192

 

The following provides information related to the lease term and discount rate as of December 31, 2021:

 

Weighted Average Remaining Lease Term (years)

 

 

 

 

Operating leases

 

 

1.7

 

Finance leases

 

 

0.6

 

 

 

 

 

 

Weighted Average Discount Rate

 

 

 

 

Operating leases

 

 

4.9

%

Finance leases

 

 

5.9

%

As of December 31, 2021, maturities of lease liabilities for each of the next five years and thereafter were as follows:

 

 

 

Operating Leases

 

 

Financing

 

(In thousands)

 

Lease Payments

 

Sublease Receipts

 

Net

 

 

Leases

 

2022

 

 

7,957

 

 

(5,732

)

 

2,225

 

 

 

403

 

2023

 

 

2,518

 

 

(957

)

 

1,561

 

 

 

 

2024

 

 

1,083

 

 

 

 

1,083

 

 

 

 

Total lease payments

 

 

11,558

 

$

(6,689

)

$

4,869

 

 

 

403

 

Less: interest

 

 

(461

)

 

 

 

 

 

 

 

 

(6

)

Present value of lease liabilities

 

$

11,097

 

 

 

 

 

 

 

 

$

397

 

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

(In thousands)

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flow attributable to operating leases

 

$

(3,921

)

 

$

(3,492

)

Operating cash flow attributable to finance leases

 

 

(42

)

 

 

(86

)

Financing cash flow attributable to finance leases

 

 

(642

)

 

 

(622

)

 

For the years ended December 31, 2021 and 2020, there were no noncash transactions related to leases.