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Leases | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Leases | Leases The Company enters into various office space, data center, and equipment lease agreements in conducting its normal business operations. At the inception of any contract, the Company evaluates the agreement to determine whether the contract contains a lease. If the contract contains a lease, the Company then evaluates the term and whether the lease is an operating or finance lease. Most leases include one or more options to renew or may have a termination option. The Company determines whether these options are reasonably certain to be exercised or not at the inception of the lease. In addition, some leases contain escalation clauses. The rent expense is recognized on a straight-line basis in the consolidated statements of operations and comprehensive income (loss) over the term of the lease. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Further, the Company treats all lease and non-lease components as a single combined lease component for all classes of underlying assets. The Company also enters into sublease agreements for some of its leased office space. Immaterial rental income attributable to subleases is offset against rent expense over the terms of the respective leases. The Company leases office space and computer and other equipment under operating lease agreements expiring at various dates. Under the lease agreements, in addition to base rent, the Company is generally responsible for operating and maintenance costs and related fees. Several of these agreements include tenant improvement allowances, rent holidays or rent escalation clauses. When such items are included in a lease agreement, we record such items in right-of-use assets and operating lease liabilities on our consolidated balance sheets equal to the difference between rent expense and future minimum lease payments due. The rent expense related to these items is recognized on a straight-line basis over the terms of the leases. Effective January 1, 2024, the Company’s primary office location is in Arlington, Virginia with a lease that expires in December 2030. In connection with various lease agreements, the Company is required to maintain $2.1 million and $2.3 million in letters of credit as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the Company held $2.1 million and $2.3 million in restricted cash and restricted investments on the consolidated balance sheet as collateral for the letters of credit, respectively. During the year ended December 31, 2023, the Company terminated a portion of its Arlington, VA lease effective December 31, 2023 and recognized the impact of a $6.5 million termination penalty in its operating lease liability - current on its consolidated balance sheet. The termination payment will consist of two payments of $3.25 million to be paid on October 1, 2023 and April 1, 2024. Right-of-Use Asset Impairment During the year ended December 31, 2023, the Company decommissioned its Chicago, IL lease and wrote off the associated right-of-use asset, recognizing an impairment charge of $24.1 million in right-of-use assets impairment on the consolidated statements of operations and comprehensive income (loss). The following table summarizes our primary office leases as of December 31, 2023 (in thousands, other than term):
Location |  | Lease Termination Term (in years) |  | Future Minimum Lease Commitments |  | Letter of Credit Amount Required
Arlington, VA(1) |  | 8.1 |  | $ | 11,973 |  |  | $ | 1,579 |
Edison, NJ |  | 2.3 |  | 1,207 |  |  | 222 |
Makati City, Philippines |  | 4.4 |  | 3,014 |  |  | — |
Alpharetta, GA |  | 1.8 |  | 834 |  |  | — |
Pune, India |  | 4.3 |  | 2,471 |  |  | — |
Brea, CA |  | 3.4 |  | 3,315 |  |  | — |
———————— (1)Effective January 29, 2024, the Company entered into a lease at 1812 North Moore Street for its corporate headquarters. The lease has a term of 7.0 years, future minimum lease commitments of $3.3 million and required letter of credit of $0.1 million. The following table summarizes the components of our lease expense (in thousands):
|  |  | For the Year Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Operating lease cost |  |  |  |  | $ | 7,984 |  |  | $ | 8,956 |  |  | $ | 12,991 |
Variable lease cost |  |  |  |  | 6,004 |  |  | 5,682 |  |  | 5,036 |
Total lease cost |  |  |  |  | $ | 13,988 |  |  | $ | 14,638 |  |  | $ | 18,027 |
Maturity of lease liabilities (in thousands) reflective of our new primary office space lease in Arlington, VA is as follows:
| Operating lease expense
2024 | $ | 12,572 |
2025 | 9,394 |
2026 | 8,561 |
2027 | 8,065 |
2028 | 6,939 |
Thereafter | 16,033 |
Total lease payments | 61,564 |
Less: |
Interest | 13,817 |
Present value of lease liabilities | $ | 47,747 |
Our weighted-average discount rate and our weighted remaining lease terms (in years) are as follows:
| December 31,
| 2023 |  | 2022 |  | 2021
Weighted average discount rate | 6.40 | % |  | 6.36 | % |  | 6.38 | %
Weighted average remaining lease term | 6.0 |  | 7.8 |  | 8.8

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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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