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Leases | 12 Months Ended
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Dec. 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 $14.0 million and $15.3 million during the years ended December 31, 2024 and 2023, respectively. The components of lease cost were as follows:
| Year Ended December 31,
| 2024 |  | 2023
Operating lease cost (1) | $ | 64.4 |  |  | $ | 71.6 |
Finance lease cost: |  |  |
Amortization of assets under finance lease | 77.9 |  | 111.7
Interest | 14.8 |  | 10.5
Total finance lease cost | $ | 92.7 |  |  | $ | 122.2 |
(1) Is presented gross of sublease income and includes short-term leases, which are immaterial. Other information related to leases was as follows:
| Year Ended December 31,
| 2024 |  | 2023
Supplemental Cash Flow Information: |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Payments for operating leases included in cash from operating activities | $ | 76.1 |  |  | $ | 91.4 |
Payments for finance leases included in cash from operating activities | 14.8 |  |  | 10.5
Payments for finance leases included in cash from financing activities | 129.4 |  |  | 126.6
Assets obtained in exchange for lease obligations: |  |  |
Operating leases | 11.1 |  |  | 34.3 |
Finance leases | $ | 171.6 |  |  | $ | 144.7 |
| As of December 31,
| 2024 |  | 2023
Weighted Average Remaining Lease Term (in years) |  |  |
Operating leases | 8.1 |  | 8.6
Finance leases | 2.8 |  | 2.7
Weighted Average Discount Rate |  |  |
Operating leases | 3.8 | % |  | 3.7 | %
Finance leases | 5.5 | % |  | 4.4 | %
Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows:
| Operating leases(1) |  | Finance leases
2025 | $ | 78.6 |  |  | 138.4 |
2026 | $ | 41.6 |  |  | 111.2 |
2027 | $ | 41.0 |  |  | 73.9 |
2028 | $ | 39.9 |  |  | 32.2 |
2029 | $ | 39.1 |  |  | — |
Thereafter | $ | 138.4 |  |  | — |
Total future minimum lease payments | $ | 378.6 |  |  | $ | 355.7 |
Less imputed interest | (63.3) |  |  | (28.9) |
Total liability | $ | 315.3 |  |  | $ | 326.8 |
(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 December 31, 2024 were as follows:
| Operating leases
2025 | 13.1 |
2026 | 9.4 |
2027 | 8.9 |
2028 | 8.6 |
2029 | 6.0 |
Thereafter | 13.9
Total future sublease rent payments, net | $ | 59.9 |
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 is secured by cash collateral. As of December 31, 2024, the Company's remaining minimum obligation under the lease for its headquarters was $170.7 million, which excludes $200.1 million of future payments allocated to non-lease components. 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. The Company recorded total impairment charges of $0.1 million, $3.6 million and $175.2 million during the years ended December 31, 2024, 2023 and 2022, respectively, for right-of-use and other lease related assets. In the fourth quarter of 2023, the Company executed an amendment to the lease ("the lease amendment") for its San Francisco, California corporate headquarters, whereby the Company will surrender to the landlord approximately 165,000 square feet of office space and pay an aggregate of $79.0 million in termination payments. The surrendering of space and payment of termination fees will occur in three tranches: approximately 52,000 square feet and $28.1 million paid in October 2023 upon the execution of the lease amendment, 54,000 square feet and $14.9 million paid in June 2024, and the remaining 59,000 feet and $36.0 million paid in January 2025. As a result of the lease amendment, the Company remeasured its related lease liability and right-of-use asset using its estimated incremental borrowing rate as of the modification date and using a relative standalone price reallocation of total contract consideration between the lease and non-lease components of the contract. The non-lease components include common area maintenance costs, which are significant in relation to the overall agreement. The determination of the standalone price of the lease and non-lease components involved judgment and was based on assumptions including future market rent rates, free rent periods and anticipated increases to common area maintenance costs. As a result of the lease amendment, the Company recognized a one-time gain of $158.8 million in the fourth quarter of 2023 from the corresponding remeasurement of the lease liability and adjustment of the right-of-use asset (which was previously impaired), partially offset by an increase in the liability for unrecoverable common area maintenance costs. The gain is recorded within net loss (gain) on real estate assets in the consolidated statement of operations. The Company's remaining lease liability associated with its corporate headquarters lease was $133.3 million as of the year ended December 31, 2024. The liability for unrecoverable common area maintenance costs totaled $51.7 million and $70.0 million as of December 31, 2024 and 2023, respectively. The liability for unrecoverable common area maintenance costs is recorded within accrued and other current liabilities and other liabilities. As of December 31, 2024, the Company has $84.0 million in commitments for operating leases that have not yet commenced, and therefore are not included in right-of-use assets or operating lease liability. The operating leases will commence in 2025 with a lease term 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 $14.0 million and $15.3 million during the years ended December 31, 2024 and 2023, respectively. The components of lease cost were as follows:
| Year Ended December 31,
| 2024 |  | 2023
Operating lease cost (1) | $ | 64.4 |  |  | $ | 71.6 |
Finance lease cost: |  |  |
Amortization of assets under finance lease | 77.9 |  | 111.7
Interest | 14.8 |  | 10.5
Total finance lease cost | $ | 92.7 |  |  | $ | 122.2 |
(1) Is presented gross of sublease income and includes short-term leases, which are immaterial. Other information related to leases was as follows:
| Year Ended December 31,
| 2024 |  | 2023
Supplemental Cash Flow Information: |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Payments for operating leases included in cash from operating activities | $ | 76.1 |  |  | $ | 91.4 |
Payments for finance leases included in cash from operating activities | 14.8 |  |  | 10.5
Payments for finance leases included in cash from financing activities | 129.4 |  |  | 126.6
Assets obtained in exchange for lease obligations: |  |  |
Operating leases | 11.1 |  |  | 34.3 |
Finance leases | $ | 171.6 |  |  | $ | 144.7 |
| As of December 31,
| 2024 |  | 2023
Weighted Average Remaining Lease Term (in years) |  |  |
Operating leases | 8.1 |  | 8.6
Finance leases | 2.8 |  | 2.7
Weighted Average Discount Rate |  |  |
Operating leases | 3.8 | % |  | 3.7 | %
Finance leases | 5.5 | % |  | 4.4 | %
Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows:
| Operating leases(1) |  | Finance leases
2025 | $ | 78.6 |  |  | 138.4 |
2026 | $ | 41.6 |  |  | 111.2 |
2027 | $ | 41.0 |  |  | 73.9 |
2028 | $ | 39.9 |  |  | 32.2 |
2029 | $ | 39.1 |  |  | — |
Thereafter | $ | 138.4 |  |  | — |
Total future minimum lease payments | $ | 378.6 |  |  | $ | 355.7 |
Less imputed interest | (63.3) |  |  | (28.9) |
Total liability | $ | 315.3 |  |  | $ | 326.8 |
(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 December 31, 2024 were as follows:
| Operating leases
2025 | 13.1 |
2026 | 9.4 |
2027 | 8.9 |
2028 | 8.6 |
2029 | 6.0 |
Thereafter | 13.9
Total future sublease rent payments, net | $ | 59.9 |
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 is secured by cash collateral. As of December 31, 2024, the Company's remaining minimum obligation under the lease for its headquarters was $170.7 million, which excludes $200.1 million of future payments allocated to non-lease components. 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. The Company recorded total impairment charges of $0.1 million, $3.6 million and $175.2 million during the years ended December 31, 2024, 2023 and 2022, respectively, for right-of-use and other lease related assets. In the fourth quarter of 2023, the Company executed an amendment to the lease ("the lease amendment") for its San Francisco, California corporate headquarters, whereby the Company will surrender to the landlord approximately 165,000 square feet of office space and pay an aggregate of $79.0 million in termination payments. The surrendering of space and payment of termination fees will occur in three tranches: approximately 52,000 square feet and $28.1 million paid in October 2023 upon the execution of the lease amendment, 54,000 square feet and $14.9 million paid in June 2024, and the remaining 59,000 feet and $36.0 million paid in January 2025. As a result of the lease amendment, the Company remeasured its related lease liability and right-of-use asset using its estimated incremental borrowing rate as of the modification date and using a relative standalone price reallocation of total contract consideration between the lease and non-lease components of the contract. The non-lease components include common area maintenance costs, which are significant in relation to the overall agreement. The determination of the standalone price of the lease and non-lease components involved judgment and was based on assumptions including future market rent rates, free rent periods and anticipated increases to common area maintenance costs. As a result of the lease amendment, the Company recognized a one-time gain of $158.8 million in the fourth quarter of 2023 from the corresponding remeasurement of the lease liability and adjustment of the right-of-use asset (which was previously impaired), partially offset by an increase in the liability for unrecoverable common area maintenance costs. The gain is recorded within net loss (gain) on real estate assets in the consolidated statement of operations. The Company's remaining lease liability associated with its corporate headquarters lease was $133.3 million as of the year ended December 31, 2024. The liability for unrecoverable common area maintenance costs totaled $51.7 million and $70.0 million as of December 31, 2024 and 2023, respectively. The liability for unrecoverable common area maintenance costs is recorded within accrued and other current liabilities and other liabilities. As of December 31, 2024, the Company has $84.0 million in commitments for operating leases that have not yet commenced, and therefore are not included in right-of-use assets or operating lease liability. The operating leases will commence in 2025 with a lease term of 6 to 7 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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