Leases

12 Months Ended

Dec. 31, 2021

We have operating and finance leases for our corporate offices and other service agreements. Our leases have remaining lease terms of less than one to five years, some of which include options to extend.

In connection with the leases, we recognized operating lease right of use assets of $2.0 million and $0.6 million and an aggregate lease liability of $6.1 million and $12.9 million in our consolidated balance sheet as of December 31, 2021 and December 31, 2020, respectively.

On July 13, 2020, the Company announced its decision to transition to an employee-centric model under which employees will work remotely rather than in traditional offices. In connection with this decision, the Company abandoned 14 leases in its global portfolio of office leases during 2020. As a result, the Company recognized accelerated amortization to fully reduce the carrying value of the associated right of use assets between the decision date and the cease use date. During the second quarter of 2021, the Company decided to reoccupy some of its leased space to provide its employees with the option of working in an office space environment if they choose to do so. There were no changes to the accounting for the lease liabilities associated with the leased office spaces. During 2021, we had a $3.5 million gain resulting from the settlement of leases.

As of December 31, 2021, due to a dispute with one of the leases in Israel, the Company was required to pledge cash as collateral security to be maintained at an Israeli bank. The collateral security would remain in control of the bank, to be available in order to satisfy outstanding obligations under the lease contracts. Accordingly, the Company had cash at an Israeli bank of approximately $1.5 million at December 31, 2021, which is recorded as restricted cash in Prepaid expenses and other current assets in the consolidated balance sheets. In the third quarter of 2021, the Company entered into a new lease in Australia and was required to pledge $0.2 million in cash as collateral security.

We continue to actively assess our global lease portfolio. However, any additional de-recognition of right of use assets and incurrence of various one-time expenses in connection with early termination of additional leases are not expected to be material to our financial condition or results of operations.

Supplemental cash flow information related to leases for the periods listed are as follows:


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	2,927	$	4,901	$	6,963
Operating cash flows for finance leases	362		88		—
Financing cash flows for finance leases	3,554		1,154		—

The components of lease costs for the periods listed are as follows:


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Finance lease cost
Amortization of right-of-use assets	$	3,718	$	772	$	—
Interest	362		88		—
Operating lease cost	8,912		12,649		12,984
Total lease cost	$	12,992	$	13,509	$	12,984


	December 31, 2021		December 31, 2020
Weighted Average Remaining Lease Term:
Operating leases	2.5 years		3.0 years
Finance leases	2.0 years		2.8 years

Weighted Average Discount Rate:
Operating leases	7	%	7	%
Finance leases	4	%	4	%

Supplemental balance sheet information related to leases is as follows:


	Classification on the Consolidated Balance Sheet	December 31, 2021		December 31, 2020
		(In thousands)
Assets
Operating ROU assets	Operating lease ROU assets	$	1,977	$	614
Finance ROU assets	Property and equipment, net	6,797		10,045

Liabilities
Current liabilities:
Operating lease liability	Operating lease liability	$	3,380	$	5,718
Finance lease liability	Accrued expenses and other current liabilities	3,738		3,488
Non-current liabilities:
Operating lease liability	Operating lease liability, net of current portion	2,733		7,180
Finance lease liability	Other liabilities	2,780		6,176

Future minimum lease payments under non-cancellable operating and finance leases (with an initial or remaining lease terms in excess of one year) are as follows:


	December 31, 2021
	Operating Leases		Finance Leases
Year Ending December 31,	(In thousands)
2022	$	3,773	$	3,936
2023	1,578		2,623
2024	526		123
2025	625		92
2026	261		—
Thereafter	—		—
Total minimum lease payments	6,763		6,774
Less: present value adjustment	(650)		(256)
Present value of lease liabilities	$	6,113	$	6,518

Rental expense for operating leases and other service agreements was approximately $13.0 million, $13.5 million and $13.0 million for the years ended December 31, 2021, 2020, and 2019, respectively.