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Leases | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | Note 14 - Leases The Company has operating leases for corporate offices under non-cancelable agreements with various expiration dates. Our leases do not have significant rent escalation, holidays, concessions, material residual value guarantees, material restrictive covenants, or contingent rent provisions. Our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component. In addition, we have elected the practical expedient to exclude short-term leases, which have an original lease term of one year or less, from our right-of-use assets and lease liabilities as well as the package of practical expedients relating to adoption of Topic 842. The Company subleases two offices. The subleases have remaining lease terms of less than nine years. Sublease income, which is recorded as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income (loss) from operations on our Consolidated Statements of Operations, was immaterial for the three and nine months ended September 30, 2022 and 2021. The following are additional details related to operating leases recorded on our Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021:
|  |  |  | September 30, |  | December 31,
|  |  |  | 2022 |  | 2021
(in millions) |  |  |  |  |  |
Assets |  |  |  |  |  |
Operating lease right-of-use assets, net |  |  |  | $ | 65.4 |  |  | $ | 59.8 |
Liabilities |  |  |  |  |  |
Current portion of operating lease liabilities |  |  |  | $ | 10.5 |  |  | $ | 8.1 |
Operating lease liabilities, net of current portion |  |  |  | $ | 69.6 |  |  | $ | 61.5 |
Rent expense was $2.8 million and $2.9 million for the three months ended September 30, 2022 and 2021, respectively. Rent expense was $9.6 million and $8.1 million for the nine months ended September 30, 2022 and 2021, respectively. Other information related to leases was as follows:
(in millions) | Three Months Ended September 30, |  | Nine Months Ended September 30,
Supplemental Cash Flow Information | 2022 |  | 2021 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 3.3 |  |  | $ | 2.3 |  |  | $ | 9.6 |  |  | $ | 7.3 |
Cash received for tenant incentive reimbursement | $ | 5.0 |  |  | $ | — |  |  | $ | 5.0 |  |  | $ | — |
Lease liabilities arising from obtaining right-of-use assets |  |  |  |  |  |  |
From acquisitions | $ | — |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | 0.2 |
From new and existing lease agreements and modifications | $ | 7.6 |  |  | $ | — |  |  | $ | 11.3 |  |  | $ | 37.5 |
|  | As of
|  | September 30, 2022 |  | December 31, 2021
Weighted average remaining lease term (in years) |  | 11.7 |  | 9.6
Weighted average discount rate |  | 5.4 | % |  | 4.4 | %
The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized as of September 30, 2022 (in millions):
Year Ending December 31, |  | Operating Leases
2022 (excluding nine months ended September 30, 2022) |  | $ | 4.8 |
2023 |  | 13.1 |
2024 |  | 11.5 |
2025 |  | 10.7 |
2026 |  | 8.1 |
Thereafter |  | 59.8 |
Total future minimum lease payments |  | 108.0 |
less effects of discounting |  | 27.9 |
Total lease liabilities |  | $ | 80.1 |
Reported as of September 30, 2022 |  |
Current portion of operating lease liabilities |  | $ | 10.5 |
Operating lease liabilities, net of current portion |  | 69.6 |
Total lease liabilities |  | $ | 80.1 |
The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced. Expense associated with short term leases and variable lease costs were immaterial for the three and nine months ended September 30, 2022. The expense related to short-term leases reasonably reflected our short-term lease commitments. Recent Leasing Activity In the third quarter of 2022, the Company executed a sublease termination agreement for sublet office space in Waltham, Massachusetts. Pursuant to the termination agreement, the sublessee paid the Company a lease termination penalty in the amount of $2.5 million. Additionally, this termination resulted in the impairment of the previously capitalized initial direct costs of $1.4 million and the recognition of a gain of $1.1 million as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income (loss) from operations on our Consolidated Statements of Operations. The Company executed an agreement to sublet the Waltham office space to a new tenant for the remainder of our lease term which commenced in September 2022. Sublease income will be recorded as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income (loss) from operations on our Consolidated Statements of Operations. The Company's head lease for the sublet office space in Waltham provides for the option to extend for an additional five years which we were previously not reasonably certain to exercise. In connection with the subleasing activity detailed above, the Company reassessed the lease term of our sublet office space in Waltham and determined that the Company is reasonably certain of exercising the option. In July, the Company recorded a $5.1 million increase in the operating lease right-of-use asset and a $5.1 million increase in the lease liability. During the nine months ended September 30, 2022, the Company executed a seven-year lease for office space in Ra’anana, Israel, with the rent payments for the first phase expected to commence at the earliest in July 2023, and the rent payments for the additional phases expected to commence between August 2023 and January 2024. Upon execution of the lease, the Company paid rent in advance of $1.7 million. The lease contains two options to extend for an additional three and five years, respectively, for which the company is not reasonably certain of exercising as of September 30, 2022. The lease is subject to fixed rate rent with the addition of VAT and certain future increases of the Israel Consumer Price Index. The lease provides for $13.8 million in tenant improvements. The Company determined that it is the accounting owner of all tenant improvements. As the commencement of this lease is expected to occur in the future, the Company has not recorded operating lease right-of-use assets or lease liabilities as of September 30, 2022. Undiscounted lease payments under all leases executed and not yet commenced are anticipated to be $340.9 million, which are not included in the tabular disclosure of undiscounted future minimum lease payments under non-cancelable leases above.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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