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Operating Leases
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Operating Leases

6. OPERATING LEASES

The Company leases its facilities and data center colocations under operating leases with various expiration dates through 2027.

The components of the Company’s lease costs were as follows:

 

 

 

Year Ended
December 31,

 

 

 

2023

 

 

2022

 

 

 

(in millions)

 

Operating lease costs

 

$

4

 

 

$

7

 

Short-term lease costs

 

 

3

 

 

 

2

 

Variable costs

 

 

1

 

 

 

1

 

Total

 

$

8

 

 

$

10

 

As of December 31, 2023 and 2022, the Company’s consolidated balance sheet included ROU assets in the amount of $5 million and $9 million, respectively, and lease liabilities in the amount of $7 million and $7 million in accrued liabilities, respectively, and $6 million and $13 million in lease liabilities, non-current, respectively.

In February 2022, the Company’s Board of Directors ("the Board") approved a restructuring plan, which included exiting various office leases. As a result, the Company ceased using certain office spaces. As the carrying value of the related right-of-use assets and leasehold improvements exceeded the estimated fair value, the Company recognized an immaterial impairment loss related to the impairment of operating ROU assets for the year ended December 31, 2023. See Note 12. Reductions in Workforce for more information about the Company’s restructuring plan.

As of December 31, 2023 and 2022, the weighted-average remaining lease term was 2 and 3 years and the weighted-average discount rate used to determine the net present value of the lease liabilities was 6% for both periods.

Supplemental cash flow information for the Company’s operating leases were as follows:

 

 

Year Ended
December 31,

 

 

 

2023

 

 

2022

 

 

 

(in millions)

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

8

 

 

$

9

 

Right-of-use assets obtained in exchange for new lease liabilities

 

$

 

 

$

4

 

The maturities of the Company’s operating lease liabilities are as follows:

 

 

December 31,

 

 

 

2023

 

Year ending December 31,

 

(in millions)

 

2024

 

$

8

 

2025

 

 

4

 

2026

 

 

1

 

2027

 

 

1

 

Total lease payments

 

 

14

 

Less: imputed interest

 

 

(1

)

Present value of lease liabilities

 

$

13