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Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
Leases | Leases The Company leases certain facilities and equipment under non-cancelable operating and finance leases which expire at various dates through 2031. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years. Some of the Company’s leases include options to terminate within one year. During the year ended 2021, the Company recorded impairments of $12.7 million on its operating lease right of use assets primarily related to exiting certain lease space as the Company regularly evaluates its office space requirements in light of more of its workforce working from home as part of a permanent “remote” or “partial remote” work model. During the year ended 2020, the Company had also decided to exit and seek subleases for certain leased facilities in the Digital Media reportable segment primarily also due to work from home models. The Company recorded a non-cash impairment charge of $12.1 million related to operating lease right-of-use assets for the affected facilities and an impairment charge of $3.6 million for associated property and equipment. The impairments were determined by comparing the fair value of the impacted right-of-use asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment. The fair value of the right-of-use asset was based on the estimated sublease income for the affected facilities taking into consideration the time it will take to obtain a sublease tenant, the applicable discount rate and the sublease rate which represent Level 3 unobservable inputs. The impairments are presented in general and administrative expenses on the Consolidated Statements of Operations. In certain agreements in which the Company leases office space where the Company is the tenant, it subleases the site to various other companies through a sublease agreement. Finance leases are not material to the Company’s consolidated financial statements and are therefore not included in the disclosures. The components of lease expense were as follows (in thousands):
| Years ended December 31,
| 2021 |  | 2020
Operating lease cost | $ | 31,396 |  |  | $ | 38,421 |
Short-term lease cost | 2,754 |  |  | 1,031 |
Total lease cost | $ | 34,150 |  |  | $ | 39,452 |
Supplemental balance sheet information related to leases was as follows (in thousands):
| December 31, 2021 |  | December 31, 2020
Operating leases |  |  |
Operating lease right-of-use assets | $ | 55,617 |  |  | $ | 80,133 |
Total operating lease right-of-use assets | $ | 55,617 |  |  | $ | 80,133 |
Operating lease liability, current | $ | 27,156 |  |  | $ | 29,634 |
Operating lease liabilities, noncurrent | 53,708 |  |  | 73,628 |
Total operating lease liabilities | $ | 80,864 |  |  | $ | 103,262 |
Supplemental cash flow information related to leases was as follows (in thousands):
| Years ended December 31,
| 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 27,798 |  |  | $ | 27,402 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | $ | 9,850 |  |  | $ | 31,148 |
Other supplemental operating lease information consists of the following:
| December 31, 2021 |  | December 31, 2020
Operating leases: |  |  |
Weighted average remaining lease term | 3.9 years |  | 4.0 years
Weighted average discount rate | 3.48 | % |  | 3.68 | %
Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):
| Operating Leases |  |
Fiscal Year: |  |  |
2022 | $ | 28,163 |  |  |
2023 | 21,261 |  |  |
2024 | 17,046 |  |  |
2025 | 8,563 |  |  |
2026 | 5,511 |  |  |
Thereafter | 5,405 |  |  |
Total lease payments | $ | 85,949 |  |  |
Less: Imputed interest | (5,085) |  |  |
Present value of operating lease liabilities | $ | 80,864 |  |  |
Sublease Total sublease income for the years ended December 31, 2021, 2020 and 2019 was $2.0 million, $2.6 million, and $3.5 million, respectively. Total estimated aggregate sublease income to be received in the future is $7.0 million. In 2020, the Company recorded $2.1 million associated with its sublease tenants in default as a result of the economic effects of COVID-19. The impairment is presented in general and administrative expenses on the Consolidated Statement of Operations. Significant Judgments Discount Rate The majority of the Company’s leases are discounted using the Company’s incremental borrowing rate as the rate implicit in the lease is not readily determinable. Rates are obtained from various large banks to determine the appropriate incremental borrowing rate each quarter for collateralized loans with a maturity similar to the lease term. Options The lease term is generally the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs.
Lesses | Leases The Company leases certain facilities and equipment under non-cancelable operating and finance leases which expire at various dates through 2031. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years. Some of the Company’s leases include options to terminate within one year. During the year ended 2021, the Company recorded impairments of $12.7 million on its operating lease right of use assets primarily related to exiting certain lease space as the Company regularly evaluates its office space requirements in light of more of its workforce working from home as part of a permanent “remote” or “partial remote” work model. During the year ended 2020, the Company had also decided to exit and seek subleases for certain leased facilities in the Digital Media reportable segment primarily also due to work from home models. The Company recorded a non-cash impairment charge of $12.1 million related to operating lease right-of-use assets for the affected facilities and an impairment charge of $3.6 million for associated property and equipment. The impairments were determined by comparing the fair value of the impacted right-of-use asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment. The fair value of the right-of-use asset was based on the estimated sublease income for the affected facilities taking into consideration the time it will take to obtain a sublease tenant, the applicable discount rate and the sublease rate which represent Level 3 unobservable inputs. The impairments are presented in general and administrative expenses on the Consolidated Statements of Operations. In certain agreements in which the Company leases office space where the Company is the tenant, it subleases the site to various other companies through a sublease agreement. Finance leases are not material to the Company’s consolidated financial statements and are therefore not included in the disclosures. The components of lease expense were as follows (in thousands):
| Years ended December 31,
| 2021 |  | 2020
Operating lease cost | $ | 31,396 |  |  | $ | 38,421 |
Short-term lease cost | 2,754 |  |  | 1,031 |
Total lease cost | $ | 34,150 |  |  | $ | 39,452 |
Supplemental balance sheet information related to leases was as follows (in thousands):
| December 31, 2021 |  | December 31, 2020
Operating leases |  |  |
Operating lease right-of-use assets | $ | 55,617 |  |  | $ | 80,133 |
Total operating lease right-of-use assets | $ | 55,617 |  |  | $ | 80,133 |
Operating lease liability, current | $ | 27,156 |  |  | $ | 29,634 |
Operating lease liabilities, noncurrent | 53,708 |  |  | 73,628 |
Total operating lease liabilities | $ | 80,864 |  |  | $ | 103,262 |
Supplemental cash flow information related to leases was as follows (in thousands):
| Years ended December 31,
| 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 27,798 |  |  | $ | 27,402 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | $ | 9,850 |  |  | $ | 31,148 |
Other supplemental operating lease information consists of the following:
| December 31, 2021 |  | December 31, 2020
Operating leases: |  |  |
Weighted average remaining lease term | 3.9 years |  | 4.0 years
Weighted average discount rate | 3.48 | % |  | 3.68 | %
Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):
| Operating Leases |  |
Fiscal Year: |  |  |
2022 | $ | 28,163 |  |  |
2023 | 21,261 |  |  |
2024 | 17,046 |  |  |
2025 | 8,563 |  |  |
2026 | 5,511 |  |  |
Thereafter | 5,405 |  |  |
Total lease payments | $ | 85,949 |  |  |
Less: Imputed interest | (5,085) |  |  |
Present value of operating lease liabilities | $ | 80,864 |  |  |
Sublease Total sublease income for the years ended December 31, 2021, 2020 and 2019 was $2.0 million, $2.6 million, and $3.5 million, respectively. Total estimated aggregate sublease income to be received in the future is $7.0 million. In 2020, the Company recorded $2.1 million associated with its sublease tenants in default as a result of the economic effects of COVID-19. The impairment is presented in general and administrative expenses on the Consolidated Statement of Operations. Significant Judgments Discount Rate The majority of the Company’s leases are discounted using the Company’s incremental borrowing rate as the rate implicit in the lease is not readily determinable. Rates are obtained from various large banks to determine the appropriate incremental borrowing rate each quarter for collateralized loans with a maturity similar to the lease term. Options The lease term is generally the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs.

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