LEASES (Notes)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

LEASES

As of December 31, 2021, the weighted average incremental borrowing rate on our operating leases was 6% and the weighted average remaining lease term was 5.8 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total lease costs were $7.1 million, $9.1 million, and $9.7 million, and total related cash payments were $7.6 million, $9.0 million, and $9.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. Short term lease costs were $1.8 million for the year ended December 31, 2021 and were immaterial for the years ended December 31, 2020 and 2019. For the years December 31, 2021, right of use assets obtained in exchange for new operating lease liabilities was $0.5 million.

The accompanying consolidated results of operations reflect rent expense on a straight-line basis over the term of the leases. Total expense under operating leases was $9.0 million, $10.2 million, and $10.3 million for the years ended December 31, 2021, 2020, and 2019, respectively.

The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheets as of December 31, 2021 (in thousands):

Year Ending December 31,	Operating Leases		Finance Leases
2022	6,671		264
2023	5,742		219
2024	4,925		72
2025	5,015		—
2026	5,168		—
Thereafter	6,500		—
Total future minimum lease payments	34,021		555
Less effects of discounting	(5,544)		(10)
Total lease liabilities	$	28,477	$	545
Reported as of December 31, 2021
Current lease liabilities included in accrued expenses and other current liabilities	5,098		256
Long-term lease liabilities	23,379		—
Other long-term liabilities	—		289
Total lease liabilities	$	28,477	$	545

Included in the operating lease commitments below are obligations under leases for which we have vacated the underlying facilities as part of various restructuring plans. These leases expire at various dates through 2026 and represent an aggregate obligation of $1.7 million. We received $0.6 million, $0.8 million, and $1.3 million of sublease income during the years ended December 31, 2021, 2020, and 2019, respectively. The future minimum lease commitments under non-cancelable leases at December 31, 2021 were as follows (in thousands):

Year Ending December 31,	Operating Leases
2022	$	7,323
2023	$	6,276
2024	$	5,395
2025	$	5,468
2026	$	5,187
Thereafter	$	6,502
Total	$	36,151

Finance lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. Each lease agreement provides an implicit discount rate used to determine the present value of future payments. The weighted-average discount rate is 2.3% as of September 30, 2020, the commencement date for our leases. The finance leases are included in “Other assets” and “Other long-term liabilities” on our condensed consolidated balance sheet as of December 31, 2021.

Lessee, Finance Leases

LEASES

As of December 31, 2021, the weighted average incremental borrowing rate on our operating leases was 6% and the weighted average remaining lease term was 5.8 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total lease costs were $7.1 million, $9.1 million, and $9.7 million, and total related cash payments were $7.6 million, $9.0 million, and $9.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. Short term lease costs were $1.8 million for the year ended December 31, 2021 and were immaterial for the years ended December 31, 2020 and 2019. For the years December 31, 2021, right of use assets obtained in exchange for new operating lease liabilities was $0.5 million.

The accompanying consolidated results of operations reflect rent expense on a straight-line basis over the term of the leases. Total expense under operating leases was $9.0 million, $10.2 million, and $10.3 million for the years ended December 31, 2021, 2020, and 2019, respectively.

The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheets as of December 31, 2021 (in thousands):

Year Ending December 31,	Operating Leases		Finance Leases
2022	6,671		264
2023	5,742		219
2024	4,925		72
2025	5,015		—
2026	5,168		—
Thereafter	6,500		—
Total future minimum lease payments	34,021		555
Less effects of discounting	(5,544)		(10)
Total lease liabilities	$	28,477	$	545
Reported as of December 31, 2021
Current lease liabilities included in accrued expenses and other current liabilities	5,098		256
Long-term lease liabilities	23,379		—
Other long-term liabilities	—		289
Total lease liabilities	$	28,477	$	545

Included in the operating lease commitments below are obligations under leases for which we have vacated the underlying facilities as part of various restructuring plans. These leases expire at various dates through 2026 and represent an aggregate obligation of $1.7 million. We received $0.6 million, $0.8 million, and $1.3 million of sublease income during the years ended December 31, 2021, 2020, and 2019, respectively. The future minimum lease commitments under non-cancelable leases at December 31, 2021 were as follows (in thousands):

Year Ending December 31,	Operating Leases
2022	$	7,323
2023	$	6,276
2024	$	5,395
2025	$	5,468
2026	$	5,187
Thereafter	$	6,502
Total	$	36,151

Finance lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. Each lease agreement provides an implicit discount rate used to determine the present value of future payments. The weighted-average discount rate is 2.3% as of September 30, 2020, the commencement date for our leases. The finance leases are included in “Other assets” and “Other long-term liabilities” on our condensed consolidated balance sheet as of December 31, 2021.