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Leases
6 Months Ended
Mar. 31, 2022
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. In March 2022, we have extended the sublease through June 30, 2023, and we will receive additional sublease income over the term of the extension of approximately $2.9 million.

The components of lease cost reflected in the Consolidated Statement of Operations for the three and six months ended March 31, 2022 and March 31, 2021 were as follows:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31,

2022

 

 

March 31,

2021

 

 

March 31,

2022

 

 

March 31,

2021

 

Operating lease cost

 

$

8,676

 

 

$

9,565

 

 

$

17,536

 

 

$

18,956

 

Short-term lease cost

 

 

582

 

 

 

610

 

 

 

1,123

 

 

 

1,158

 

Variable lease cost

 

 

2,596

 

 

 

2,476

 

 

 

5,086

 

 

 

4,863

 

Sublease income

 

 

(1,113

)

 

 

(1,131

)

 

 

(2,230

)

 

 

(2,215

)

Total lease cost

 

$

10,741

 

 

$

11,520

 

 

$

21,515

 

 

$

22,762

 

 

Supplemental cash flow and right-of-use assets information for the three and six months ended March 31, 2022 was as follows:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31,

2022

 

 

March 31,

2021

 

 

March 31,

2022

 

 

March 31,

2021

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

9,248

 

 

$

14,016

 

 

$

25,113

 

 

$

28,076

 

Financing cash flows from financing leases

 

$

 

 

$

 

 

$

239

 

 

$

279

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating leases

 

$

6,179

 

 

$

53

 

 

$

11,095

 

 

$

647

 

Financing leases

 

$

 

 

$

 

 

$

 

 

$

 

Supplemental balance sheet information related to the leases as of March 31, 2022 was as follows:

 

As of

March 31, 2022

 

Weighted-average remaining lease term - operating leases

11.7 years

 

Weighted-average remaining lease term - financing leases

2.4 years

 

Weighted-average discount rate - operating leases

 

5.3

%

Weighted-average discount rate - financing leases

 

3.0

%

Maturities of lease liabilities as of March 31, 2022 are as follows:

(in thousands)

 

 

 

 

Remainder of 2022

 

$

18,452

 

2023

 

 

31,054

 

2024

 

 

27,018

 

2025

 

 

24,090

 

2026

 

 

20,125

 

Thereafter

 

 

160,580

 

Total future lease payments

 

$

281,319

 

Less: imputed interest

 

 

(77,329

)

Total lease liability

 

$

203,990

 

Exited (Restructured) Facilities

As of March 31, 2022, we had net liabilities of $1.7 million related to excess facilities (compared to $3.6 million at September 30, 2021), representing $0.3 million of right-of-use assets and $2.0 million of lease obligations, all of which is classified as short 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 March 31, 2022, the right-of-use assets for exited facilities reflects discounted committed sublease income of approximately $0.7 million.

In the three and six months ended March 31, 2022, we made payments of $0.6 million and $1.3 million, respectively, related to lease costs for exited facilities. In the three and six months ended March 31, 2021, we made payments of $2.5 million and $6.3 million, respectively.