Leases Leases

12 Months Ended

Dec. 31, 2024

Leases

We lease office space, data centers and certain equipment under operating leases expiring on various dates through 2030, with various renewal options that can extend the lease terms by one to ten years. Our operating leases include fixed payments plus, in some cases, scheduled base rent increases over the term of the lease. Certain leases require variable payments of real estate taxes, insurance and operating expenses. We exclude these variable payments from the measurements of our lease liabilities and expense them as incurred. We elected the practical expedient to combine lease and nonlease components. No lease agreements contain any residual value guarantees or material restrictive covenants. As of December 31, 2024, we have not entered into any material finance leases. We sublease certain office spaces to third parties resulting from restructuring activities in certain locations.

Lease Impairment Charges

Operating lease right-of-use (“ROU”) assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group to which the operating lease ROU asset is assigned may not be recoverable. First, we test the asset group for recoverability by comparing the undiscounted cash flows of the asset group, which include expected future lease and nonlease payments related to the lease agreement offset by expected sublease income, to the carrying amount of the asset group. If the first step of the long-lived asset impairment test concludes that the carrying amount of the asset group is not recoverable, we perform the second step of the long-lived asset impairment test by comparing the fair value of the asset group to its carrying amount and recognizing a lease impairment charge for the amount by which the carrying amount exceeds the fair value. To estimate the fair value of the asset group, we rely on a discounted cash flow approach using market participant assumptions of the expected cash flows and discount rate.

During the years ended December 31, 2024, 2023, and 2022 we recognized non-cash lease-related impairment charges of $3.5 million, $6.3 million, and $0.2 million, respectively.

2024

During 2024, we exited our office space previously occupied by GG+A and a portion of our office space in New York, New York, resulting in non-cash impairment charges of $2.7 million, of which $2.0 million was allocated to the operating lease ROU assets and $0.7 million was allocated to the related fixed assets based on their relative carrying amounts. Additionally, in 2024, we recognized $0.8 million of lease-related impairment charges driven by updated sublease assumptions for our previously vacated office spaces in Lexington, Massachusetts; and Lake Oswego, Oregon. Of the $0.8 million, $0.7 million was allocated to the fixed assets related to the office spaces and $0.1 million was allocated to the operating lease ROU assets based on their relative carrying amounts.

2023

During 2023, we exited our office spaces in Hillsboro, Oregon and Lexington, Massachusetts, resulting in non-cash impairment charges of $5.4 million, of which $4.0 million was allocated to the operating lease ROU assets and $1.4 million was allocated to the related fixed assets based on their relative carrying amounts. Additionally, in 2023, we recognized $0.9 million of lease-related impairment charges driven by updated sublease assumptions for our previously vacated office spaces in Hillsboro, Oregon; New York, New York; and Lake Oswego, Oregon. Of the $0.9 million, $0.5 million was allocated to the fixed assets related to the office spaces and $0.4 million was allocated to the operating lease ROU assets based on their relative carrying amounts.

2022

The $0.2 million lease-related impairment charge recognized in 2022 resulted from updated sublease assumptions for our previously vacated office space in New York, New York and was allocated to the operating lease ROU asset.

See Note 11 “Restructuring Charges” for additional information on our restructuring activities.

Additional information on our operating leases as of December 31, 2024 and 2023 follows.


	As of December 31,
Balance Sheet	2024		2023
Operating lease right-of-use assets	$	19,176	$	24,131

Current maturities of operating lease liabilities	$	12,315	$	11,032
Operating lease liabilities, net of current portion	29,686		38,850
Total lease liabilities	$	42,001	$	49,882


	Year Ended December 31,
Lease Cost	2024		2023		2022
Operating lease cost	$	7,939	$	8,514	$	8,877
Short-term lease cost(1)	565		608		263
Variable lease costs	4,935		3,908		4,587
Sublease income	(2,446)		(2,157)		(1,921)
Net lease cost(2)	$	10,993	$	10,873	$	11,806

(1)Includes variable lease costs related to short-term leases.

(2)Net lease cost includes $2.2 million, $1.8 million and $2.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, recorded as restructuring charges as they relate to vacated office spaces. See Note 11 “Restructuring Charges” for additional information on our vacated office spaces.

The table below summarizes the remaining expected lease payments under our operating leases as of December 31, 2024.


Future Lease Payments	December 31, 2024
2025	$	14,139
2026	12,920
2027	9,465
2028	5,907
2029	3,624
Thereafter	426
Total operating lease payments	$	46,481
Less: imputed interest	(4,480)
Present value of operating lease liabilities	$	42,001


	Year Ended December 31,
Other Information	2024			2023			2022
Cash paid for operating lease liabilities	$	13,458		$	13,107		$	12,634
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	4,286		$	4,678		$	1,908

Weighted average remaining lease term - operating leases	3.7 years			4.5 years			5.3 years
Weighted average discount rate - operating leases	4.3		%	4.4		%	4.2		%