Leases

9 Months Ended

Sep. 30, 2023

9. Leases

The Company leases office facilities under non-cancelable operating leases that expire at various dates through February 2035.

During the nine months ended September 30, 2023, the lease term began, was amended, or extended for various leases of office spaces globally. The Company recorded an increase of $1.3 million of right-of-use assets and $6.7 million of lease liabilities for these leases during the period upon the lease commencement, amendment, or extension. Refer to Note 15 regarding the lease terminations and abandonments in connection with the Restructuring Plan.

The Company uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of operating lease payments. To determine the estimated incremental borrowing rate, the Company uses publicly available credit ratings for peer companies. The Company estimates the incremental borrowing rate using yields for maturities that are in line with the duration of the lease payments. The weighted average discount rate for operating leases as of September 30, 2023 was 4.9%.

Operating lease expense and cash payments related to operating lease liabilities for the three and nine months ended September 30, 2023 and 2022 are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
Operating lease expense	$	10,230	$	10,695	$	33,139	$	32,392
Cash payments	$	14,701	$	8,094	$	45,827	$	29,033

The Company subleases some of its unused spaces to third parties. Operating sublease income generated under all operating lease agreements for the three and nine months ended September 30, 2023 and 2022 are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
Operating sublease income	$	1,953	$	1,037	$	5,995	$	3,325