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

14. Leases

Our operating leases expire at various dates through 2037 and are primarily for office space, cars, servers, and office equipment.

Our headquarters are located at 121 Seaport Boulevard, Boston, Massachusetts. In February 2019, we subleased a portion of our headquarters through June 30, 2022. We will receive approximately $9.1 million in sublease income over the term of the sublease.

The components of lease cost reflected in the Consolidated Statement of Operations for the three months ended December 31, 2021 and December 31, 2020 were as follows:

 

(in thousands)

 

Three months ended

 

 

 

December 31,

2021

 

 

December 31,

2020

 

Operating lease cost

 

$

8,860

 

 

$

9,391

 

Short-term lease cost

 

 

540

 

 

 

548

 

Variable lease cost

 

 

2,490

 

 

 

2,387

 

Sublease income

 

 

(1,117

)

 

 

(1,084

)

Total lease cost

 

$

10,773

 

 

$

11,242

 

 

 

Supplemental cash flow and right-of-use assets information for the three months ended December 31, 2021 and December 31, 2020 was as follows:

 

(in thousands)

 

Three months ended

 

 

 

December 31,

2021

 

 

December 31,

2020

 

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

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

15,865

 

 

$

14,060

 

Financing cash flows from financing leases

 

$

239

 

 

$

279

 

Right-of-use assets obtained in exchange for new lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

601

 

 

$

594

 

Financing leases

 

$

 

 

$

 

Supplemental balance sheet information related to the leases as of December 31, 2021 was as follows:

 

Weighted-average remaining lease term - operating leases

11.8 years

 

Weighted-average remaining lease term - financing leases

4.0 years

 

Weighted-average discount rate - operating leases

 

5.4

%

Weighted-average discount rate - financing leases

 

3.0

%

 

Maturities of lease liabilities as of December 31, 2021 are as follows:

 

(in thousands)

 

 

 

 

Remainder of 2022

 

$

28,792

 

2023

 

 

29,469

 

2024

 

 

26,191

 

2025

 

 

22,652

 

2026

 

 

18,681

 

Thereafter

 

 

159,162

 

Total future lease payments

 

$

284,947

 

Less: imputed interest

 

 

(78,915

)

Total lease liability

 

$

206,032

 

Exited (Restructured) Facilities

As of December 31, 2021, we have net liabilities of $2.7 million related to excess facilities (compared to $3.6 million at September 30, 2021), representing $0.9 million of right-of-use assets and $3.6 million of lease obligations, of which $3.0 million is classified as short term and $0.6 million is classified as long term. Variable costs related to these exited facilities are included in our restructuring accrual. All expenses and income associated with exited facilities are included in restructuring and other charges, net (refer to Note 3. Restructuring and Other Charges).

In determining the amount of right-of-use assets for restructured facilities, we are required to estimate such factors as future vacancy rates, the time required to sublet properties and sublease rates. Updates to these estimates may result in revisions to the value of right-of-use assets recorded. The amounts recorded are based on the net present value of estimated sublease income. As of December 31, 2021, the right-of-use assets for exited facilities reflects discounted committed sublease income of approximately $0.9 million.

In the first quarter of 2022 and 2021, we made net payments of $0.7 million and $3.8 million, respectively, related to lease costs for exited facilities.