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Leases
 3 Months Ended
Mar. 31, 2024
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 12 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 9 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 $3.5 million and $4.5 million during the three months ended March 31, 2024 and 2023, respectively.

Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows:

Operating leases(1)
Finance leases
Remainder of 2024$57.9 $99.7 
202577.397.9 
202640.4 69.9 
202739.833.1 
202838.61.2 
202937.8— 
Thereafter139.0 — 
Total future minimum lease payments$430.8 $301.8 
Less imputed interest(74.1)(22.5)
Less tenant improvement receivables(0.1)— 
Total liability$356.6 $279.3 
(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 March 31, 2024 were as follows:

Operating leases
Remainder of 2024$13.0 
202512.4
20268.2
20277.9
20287.7
20295.1 
Thereafter13.7
Total future sublease rent payments, net68.0

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 $17.5 million letter of credit, which reduced the Company's borrowing capacity under the revolving credit facility. As of March 31, 2024, the Company's remaining minimum obligation under the lease for its headquarters was $191.2 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, the Company retained a portion of its office space to be used for the Company’s team collaboration use and a portion was marketed for sublease. In connection with these changes, 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.

As part of 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.

During the three months ended March 31, 2024 and 2023, the Company did not recognize any impairment charge related to right-of-use assets and other lease related property and equipment assets.

As of March 31, 2024, the Company had $85.7 million in commitments for leases that have not yet commenced, and therefore is not included in the right-of-use asset or lease liability. These leases will commence in 2024 and 2025, with lease terms of 6 to 7 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 12 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 9 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 $3.5 million and $4.5 million during the three months ended March 31, 2024 and 2023, respectively.

Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows:

Operating leases(1)
Finance leases
Remainder of 2024$57.9 $99.7 
202577.397.9 
202640.4 69.9 
202739.833.1 
202838.61.2 
202937.8— 
Thereafter139.0 — 
Total future minimum lease payments$430.8 $301.8 
Less imputed interest(74.1)(22.5)
Less tenant improvement receivables(0.1)— 
Total liability$356.6 $279.3 
(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 March 31, 2024 were as follows:

Operating leases
Remainder of 2024$13.0 
202512.4
20268.2
20277.9
20287.7
20295.1 
Thereafter13.7
Total future sublease rent payments, net68.0

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 $17.5 million letter of credit, which reduced the Company's borrowing capacity under the revolving credit facility. As of March 31, 2024, the Company's remaining minimum obligation under the lease for its headquarters was $191.2 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, the Company retained a portion of its office space to be used for the Company’s team collaboration use and a portion was marketed for sublease. In connection with these changes, 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.

As part of 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.

During the three months ended March 31, 2024 and 2023, the Company did not recognize any impairment charge related to right-of-use assets and other lease related property and equipment assets.

As of March 31, 2024, the Company had $85.7 million in commitments for leases that have not yet commenced, and therefore is not included in the right-of-use asset or lease liability. These leases will commence in 2024 and 2025, with lease terms of 6 to 7 years.