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Leases | 9 Months Ended
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Sep. 30, 2023
Leases [Abstract] |
Leases | Leases The Company has operating leases for corporate offices and datacenters, and finance leases for infrastructure and office equipment. The Company’s leases have remaining lease terms of under 1 year to 13 years, some of which include options to extend the leases for up to 5 years. The Company also has subleases for several floors of its former corporate offices. The Company classifies its subleases as operating leases. The subleases have remaining lease terms of 1 year to 10 years, some of which include options to extend the sublease for up to approximately 4 years. Sublease income, which is recorded as a reduction of rental expense, was $3.6 million and $11.9 million during the three and nine months ended September 30, 2023, respectively, and $5.3 million and $14.8 million during the three and nine months ended September 30, 2022, respectively. Future minimum lease payments under non-cancellable leases as of September 30, 2023 were as follows:
| Operating leases(1) |  | Finance leases
Remainder of 2023 | $ | 23.5 |  |  | $ | 34.1 |
2024 | 92.5 |  | 115.0 |
2025 | 87.6 |  |  | 74.8 |
2026 | 68.0 |  | 47.9 |
2027 | 68.3 |  | 11.4 |
2028 | 68.4 |  | — |
Thereafter | 351.9 |  |  | — |
Total future minimum lease payments | $ | 760.2 |  |  | $ | 283.2 |
Less imputed interest | (140.8) |  |  | (17.4) |
Less tenant improvement receivables | (1.2) |  |  | — |
Total liability | $ | 618.2 |  |  | $ | 265.8 |
(1) Consists of future non-cancelable minimum rental payments under operating leases for the Company’s corporate offices and datacenters where the Company has possession, excluding rent payments for short-term lease obligations, payments from the Company’s subtenants and variable operating expenses. Future non-cancelable rent payments from the Company's subtenants as of September 30, 2023 were as follows:
| Operating leases
Remainder of 2023 | $ | 4.3 |
2024 | 17.3
2025 | 15.7
2026 | 11.9
2027 | 8.2
2028 | 7.7
Thereafter | 18.6
Total future sublease rent payments, net | 83.7
In 2017, the Company signed a 15 year lease agreement for office space in San Francisco, California, to serve as its corporate headquarters which commenced in 2018. The Company's obligations under the lease are supported by a $24.1 million letter of credit, which reduced the borrowing capacity under the revolving credit facility. As of September 30, 2023, the Company's remaining minimum obligation for its headquarters was $520.3 million. In the fourth quarter of 2020, the Company announced a Virtual First work model pursuant to which remote work has become the primary experience for all of its employees. As part of the Virtual First strategy, Dropbox retained a portion of its office space to be used for the Company’s team collaboration use and a portion will be marketed for sublease. The Company evaluated certain of its right-of-use assets and other lease related assets including leasehold improvements, furniture and fixtures, and computer equipment for impairment under ASC 360. In connection with this analysis, the Company reassessed its real estate asset groups and estimated the fair value of the office space to be subleased using current market conditions. Where the carrying value of the individual asset groups exceeded their fair value, an impairment charge was recognized for the difference. The Company recorded total impairment charges of zero and $2.2 million during the three and nine months ended September 30, 2023, respectively, and $4.0 million and $12.7 million during the three and nine months ended September 30, 2022, respectively, for right-of-use and other lease related assets. As of September 30, 2023, the Company has a $19.2 million commitment for an operating lease that has not yet commenced, and therefore is not included in the right-of-use asset or operating lease liability. This operating lease will commence in 2024 with a lease term of 6.5 years.
Leases | Leases The Company has operating leases for corporate offices and datacenters, and finance leases for infrastructure and office equipment. The Company’s leases have remaining lease terms of under 1 year to 13 years, some of which include options to extend the leases for up to 5 years. The Company also has subleases for several floors of its former corporate offices. The Company classifies its subleases as operating leases. The subleases have remaining lease terms of 1 year to 10 years, some of which include options to extend the sublease for up to approximately 4 years. Sublease income, which is recorded as a reduction of rental expense, was $3.6 million and $11.9 million during the three and nine months ended September 30, 2023, respectively, and $5.3 million and $14.8 million during the three and nine months ended September 30, 2022, respectively. Future minimum lease payments under non-cancellable leases as of September 30, 2023 were as follows:
| Operating leases(1) |  | Finance leases
Remainder of 2023 | $ | 23.5 |  |  | $ | 34.1 |
2024 | 92.5 |  | 115.0 |
2025 | 87.6 |  |  | 74.8 |
2026 | 68.0 |  | 47.9 |
2027 | 68.3 |  | 11.4 |
2028 | 68.4 |  | — |
Thereafter | 351.9 |  |  | — |
Total future minimum lease payments | $ | 760.2 |  |  | $ | 283.2 |
Less imputed interest | (140.8) |  |  | (17.4) |
Less tenant improvement receivables | (1.2) |  |  | — |
Total liability | $ | 618.2 |  |  | $ | 265.8 |
(1) Consists of future non-cancelable minimum rental payments under operating leases for the Company’s corporate offices and datacenters where the Company has possession, excluding rent payments for short-term lease obligations, payments from the Company’s subtenants and variable operating expenses. Future non-cancelable rent payments from the Company's subtenants as of September 30, 2023 were as follows:
| Operating leases
Remainder of 2023 | $ | 4.3 |
2024 | 17.3
2025 | 15.7
2026 | 11.9
2027 | 8.2
2028 | 7.7
Thereafter | 18.6
Total future sublease rent payments, net | 83.7
In 2017, the Company signed a 15 year lease agreement for office space in San Francisco, California, to serve as its corporate headquarters which commenced in 2018. The Company's obligations under the lease are supported by a $24.1 million letter of credit, which reduced the borrowing capacity under the revolving credit facility. As of September 30, 2023, the Company's remaining minimum obligation for its headquarters was $520.3 million. In the fourth quarter of 2020, the Company announced a Virtual First work model pursuant to which remote work has become the primary experience for all of its employees. As part of the Virtual First strategy, Dropbox retained a portion of its office space to be used for the Company’s team collaboration use and a portion will be marketed for sublease. The Company evaluated certain of its right-of-use assets and other lease related assets including leasehold improvements, furniture and fixtures, and computer equipment for impairment under ASC 360. In connection with this analysis, the Company reassessed its real estate asset groups and estimated the fair value of the office space to be subleased using current market conditions. Where the carrying value of the individual asset groups exceeded their fair value, an impairment charge was recognized for the difference. The Company recorded total impairment charges of zero and $2.2 million during the three and nine months ended September 30, 2023, respectively, and $4.0 million and $12.7 million during the three and nine months ended September 30, 2022, respectively, for right-of-use and other lease related assets. As of September 30, 2023, the Company has a $19.2 million commitment for an operating lease that has not yet commenced, and therefore is not included in the right-of-use asset or operating lease liability. This operating lease will commence in 2024 with a lease term of 6.5 years.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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