Leases

12 Months Ended

Dec. 31, 2021


Note 15.			Leases

We have commitments for future payments related to office facilities leases. We determine if an arrangement is a lease at inception. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available in determining the present value of future payments. Operating lease assets also exclude lease incentives and initial direct costs incurred. Some of our leases include options to extend or terminate the lease. Our leases generally include one or more options to renew; however, the exercise of lease renewal options is at our sole discretion. For nearly all of our operating leases, upon adoption of the new guidance, we have not assumed any options to extend will be exercised as part of our calculation of the lease liability.

We have operating leases for office space and data centers with remaining lease terms of 1 year to 4 years.

We recorded $2.5 million, and $1.1 million of lease asset impairment charges in 2021 and 2020, respectively, for office space previously vacated. In 2021 we also recorded a non-cash gain of $3.6 million on release of operating lease liabilities, related to the 2021 termination of a portion of our lease at our corporate headquarters for which the related operating lease asset was previously impaired. These amounts were recognized in restructuring and other charges on the consolidated statements of operations.

In 2021 and 2020, we entered into amendments that extended certain office leases, resulting in right-of-use assets obtained in exchange for lease obligations of $1.1 million and $0.9 million, respectively.

Details related to lease expense and supplemental cash flow were as follows (in thousands):


	Years Ended December 31,
	2021		2020
Operating lease expense	$	3,058	$	4,118
Variable lease expense	646		711
Sublease income	(548)		(1,330)
Net lease expense	$	3,156	$	3,499

Operating cash outflows for lease liabilities	$	4,109	$	4,356

Details related to lease term and discount rate were as follows:


	December 31, 2021		December 31, 2020
Weighted-average remaining lease term (in years)	2 years		3 years
Weighted-average discount rate	4.73	%	4.95	%

Future minimum lease payments as of December 31, 2021 are as follows (in thousands):


	Office Leases
2022	$	2,310
2023	1,390
2024	967
2025	195
2026	—

Total minimum payments (a)	4,862
Less: Imputed interest	449
Present value of total minimum payments (b)	$	4,413

(a) Total minimum payments exclude executory costs, inclusive of insurance, maintenance, and taxes, of $1.8 million; minimum payments also have not been reduced by sublease rentals of $0.1 million due in the future under subleases.

(b) $2.3 million is included in Long-term lease liabilities and $2.1 million is included in Accrued and other current liabilities on the consolidated balance sheets.