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LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
Our operating leases primarily consist of leases for real estate throughout the world with lease expirations between 2024 and 2025. These arrangements typically do not transfer ownership of the underlying asset as we do
not assume, nor do we intend to assume, the risks and rewards of ownership. Our finance leases were related to property and equipment, primarily computer hardware, all of which expired in the year ended December 31, 2022.
In November 2023, we signed a lease for our new headquarters that continues to be located in Chicago, Illinois. We had access to the facility effective December 2023 and the lease expires on December 15, 2025.
We previously leased our headquarters located in Chicago, Illinois ("600 West Chicago"). During the year ended December 31, 2022, we reassessed the term of our 600 West Chicago operating lease as we were reasonably certain to exercise our option to early terminate the lease. As a result, our expected future minimum lease payments related to that lease were modified. Our reassessment included an increase in our Accrued expenses and other current liabilities of $11.6 million, a decrease to our long-term Operating lease obligations of $25.6 million, a decrease to our Right-of-use assets - operating leases, net of $9.5 million in the Consolidated Balance Sheets and a gain of $4.5 million in Restructuring and related charges in the Consolidated Statements of Operations. Refer to Note 13, Restructuring and Related Charges for additional information on the gain recognized. In January 2023, we exercised our option to early terminate our lease at 600 West Chicago effective on January 31, 2024, which required us to pay a penalty of $9.6 million with our early termination notice.
We subleased a portion of 600 West Chicago to Uptake, Inc. ("Uptake"), a Lightbank LLC portfolio company as a related party transaction. The sublease was a market rate transaction on terms that we believe are no less favorable than would have been reached with an unrelated party. As part of our reassessment of 600 West Chicago lease and early termination option noted above, we modified the sublease term to expire on January 30, 2024, as well. Given the uncertainty of collectability of our sublease income with Uptake, we recognized impairment of $1.8 million related to that portion of the right-of-use assets - operating leases for the year ended December 31, 2022, which is presented in Restructuring and related charges on the Consolidated Statements of Operations. In the first quarter of 2023, we initiated a lawsuit against Uptake for breach of the lease agreement and settled that lawsuit in the fourth quarter of 2023. See note 9, Commitments and Contingencies for additional information.
The following summarizes right-of-use assets as of December 31, 2023 and 2022 (in thousands):
December 31, 2023December 31, 2022
Right-of-use assets - operating leases$18,099 $60,204 
Less: accumulated depreciation and amortization (15,902)(48,077)
Right-of-use assets - operating leases, net$2,197 $12,127 

For the year ended December 31, 2022, we determined a downward revision of our forecast in the second quarter of 2022 and further downward revision in the fourth quarter of 2022 each required us to evaluate our long-lived assets for impairment. As a result of our interim quantitative assessments, we recognized impairment related to our right-of-use assets - operating leases of $7.8 million within our International segment, which is presented in Long-lived asset impairments on the Consolidated Statements of Operations. We also recognized impairment for our right-of-use assets - operating leases related to our 2020 Restructuring Plan of $1.2 million, which is presented in Restructuring and related charges on the Consolidated Statements of Operations. See Note 13, Restructuring and Related Charges, for more information
Due to actions taken under our 2020 Restructuring Plan, we recognized impairment of $6.8 million related to right-of-use assets - operating leases for the year ended December 31, 2021, which are presented in Restructuring and related charges on the Consolidated Statements of Operations. See Note 13, Restructuring and Related Charges, for more information.
The following table summarizes our lease costs and sublease income for the years ended December 31, 2023, 2022 and 2021 (in thousands):
Year Ended December 31,
202320222021
Financing lease cost:
Amortization of right-of-use assets$— $543 $3,621 
Interest on lease liabilities— 12 120 
Total finance lease cost— 555 3,741 
Operating lease cost (1)
10,962 20,880 25,346 
Variable lease cost (2)
6,332 7,966 6,378 
Short-term lease cost58 57 83 
Sublease income, gross (3)
(6,039)(3,949)(4,650)
Total lease cost$11,313 $25,509 $30,898 
(1)Operating lease costs presented as Selling, general and administrative and Restructuring and related charges in the Consolidated Statements of Operations totaled $8.6 million and $2.4 million for the year ended December 31, 2023, $15.7 million and $5.2 million     for the year ended December 31, 2022 and $17.6 million and $7.8 million for the year ended December 31, 2021.
(2)Variable lease costs presented as Selling, general and administrative and Restructuring and related charges in the Consolidated Statements of Operations totaled $3.7 million and $2.6 million for the year ended December 31, 2023, $5.6 million and $2.4 million for the year ended December 31, 2022 and $4.7 million and $1.7 million for the year ended December 31, 2021.
(3)Sublease income, gross primarily presented as Restructuring and related charges in the Consolidated Statements of Operations for the years ended December 31, 2023 and entirely for the years ended December 31, 2022 and 2021. Additionally, for the year ended December 31, 2023, sublease income, gross includes the settlement related to Uptake. See Note 9, Commitments and Contingencies for additional information.
As of December 31, 2023, the future payments under operating leases for each of the next five years and thereafter are as follows (in thousands):
Operating Leases
20247,408 
20252,401 
2026— 
2027— 
2028— 
Thereafter — 
Total minimum lease payments9,809 
Less: Amount representing interest(306)
Present value of net minimum lease payments9,503 
Less: Current portion of lease obligations(7,121)
Total long-term lease obligations$2,382 
As of December 31, 2023, we do not have any material non-cancelable operating lease commitments that have not yet commenced.
As of December 31, 2023 and 2022, the weighted-average remaining lease term and weighted-average discount rate for our operating leases were as follows:
December 31, 2023December 31, 2022
Weighted-average lease term1 year1 year
Weighted-average discount rate5.8 %6.4 %
LEASES LEASES
Our operating leases primarily consist of leases for real estate throughout the world with lease expirations between 2024 and 2025. These arrangements typically do not transfer ownership of the underlying asset as we do
not assume, nor do we intend to assume, the risks and rewards of ownership. Our finance leases were related to property and equipment, primarily computer hardware, all of which expired in the year ended December 31, 2022.
In November 2023, we signed a lease for our new headquarters that continues to be located in Chicago, Illinois. We had access to the facility effective December 2023 and the lease expires on December 15, 2025.
We previously leased our headquarters located in Chicago, Illinois ("600 West Chicago"). During the year ended December 31, 2022, we reassessed the term of our 600 West Chicago operating lease as we were reasonably certain to exercise our option to early terminate the lease. As a result, our expected future minimum lease payments related to that lease were modified. Our reassessment included an increase in our Accrued expenses and other current liabilities of $11.6 million, a decrease to our long-term Operating lease obligations of $25.6 million, a decrease to our Right-of-use assets - operating leases, net of $9.5 million in the Consolidated Balance Sheets and a gain of $4.5 million in Restructuring and related charges in the Consolidated Statements of Operations. Refer to Note 13, Restructuring and Related Charges for additional information on the gain recognized. In January 2023, we exercised our option to early terminate our lease at 600 West Chicago effective on January 31, 2024, which required us to pay a penalty of $9.6 million with our early termination notice.
We subleased a portion of 600 West Chicago to Uptake, Inc. ("Uptake"), a Lightbank LLC portfolio company as a related party transaction. The sublease was a market rate transaction on terms that we believe are no less favorable than would have been reached with an unrelated party. As part of our reassessment of 600 West Chicago lease and early termination option noted above, we modified the sublease term to expire on January 30, 2024, as well. Given the uncertainty of collectability of our sublease income with Uptake, we recognized impairment of $1.8 million related to that portion of the right-of-use assets - operating leases for the year ended December 31, 2022, which is presented in Restructuring and related charges on the Consolidated Statements of Operations. In the first quarter of 2023, we initiated a lawsuit against Uptake for breach of the lease agreement and settled that lawsuit in the fourth quarter of 2023. See note 9, Commitments and Contingencies for additional information.
The following summarizes right-of-use assets as of December 31, 2023 and 2022 (in thousands):
December 31, 2023December 31, 2022
Right-of-use assets - operating leases$18,099 $60,204 
Less: accumulated depreciation and amortization (15,902)(48,077)
Right-of-use assets - operating leases, net$2,197 $12,127 

For the year ended December 31, 2022, we determined a downward revision of our forecast in the second quarter of 2022 and further downward revision in the fourth quarter of 2022 each required us to evaluate our long-lived assets for impairment. As a result of our interim quantitative assessments, we recognized impairment related to our right-of-use assets - operating leases of $7.8 million within our International segment, which is presented in Long-lived asset impairments on the Consolidated Statements of Operations. We also recognized impairment for our right-of-use assets - operating leases related to our 2020 Restructuring Plan of $1.2 million, which is presented in Restructuring and related charges on the Consolidated Statements of Operations. See Note 13, Restructuring and Related Charges, for more information
Due to actions taken under our 2020 Restructuring Plan, we recognized impairment of $6.8 million related to right-of-use assets - operating leases for the year ended December 31, 2021, which are presented in Restructuring and related charges on the Consolidated Statements of Operations. See Note 13, Restructuring and Related Charges, for more information.
The following table summarizes our lease costs and sublease income for the years ended December 31, 2023, 2022 and 2021 (in thousands):
Year Ended December 31,
202320222021
Financing lease cost:
Amortization of right-of-use assets$— $543 $3,621 
Interest on lease liabilities— 12 120 
Total finance lease cost— 555 3,741 
Operating lease cost (1)
10,962 20,880 25,346 
Variable lease cost (2)
6,332 7,966 6,378 
Short-term lease cost58 57 83 
Sublease income, gross (3)
(6,039)(3,949)(4,650)
Total lease cost$11,313 $25,509 $30,898 
(1)Operating lease costs presented as Selling, general and administrative and Restructuring and related charges in the Consolidated Statements of Operations totaled $8.6 million and $2.4 million for the year ended December 31, 2023, $15.7 million and $5.2 million     for the year ended December 31, 2022 and $17.6 million and $7.8 million for the year ended December 31, 2021.
(2)Variable lease costs presented as Selling, general and administrative and Restructuring and related charges in the Consolidated Statements of Operations totaled $3.7 million and $2.6 million for the year ended December 31, 2023, $5.6 million and $2.4 million for the year ended December 31, 2022 and $4.7 million and $1.7 million for the year ended December 31, 2021.
(3)Sublease income, gross primarily presented as Restructuring and related charges in the Consolidated Statements of Operations for the years ended December 31, 2023 and entirely for the years ended December 31, 2022 and 2021. Additionally, for the year ended December 31, 2023, sublease income, gross includes the settlement related to Uptake. See Note 9, Commitments and Contingencies for additional information.
As of December 31, 2023, the future payments under operating leases for each of the next five years and thereafter are as follows (in thousands):
Operating Leases
20247,408 
20252,401 
2026— 
2027— 
2028— 
Thereafter — 
Total minimum lease payments9,809 
Less: Amount representing interest(306)
Present value of net minimum lease payments9,503 
Less: Current portion of lease obligations(7,121)
Total long-term lease obligations$2,382 
As of December 31, 2023, we do not have any material non-cancelable operating lease commitments that have not yet commenced.
As of December 31, 2023 and 2022, the weighted-average remaining lease term and weighted-average discount rate for our operating leases were as follows:
December 31, 2023December 31, 2022
Weighted-average lease term1 year1 year
Weighted-average discount rate5.8 %6.4 %
LEASES LEASES
Our operating leases primarily consist of leases for real estate throughout the world with lease expirations between 2024 and 2025. These arrangements typically do not transfer ownership of the underlying asset as we do
not assume, nor do we intend to assume, the risks and rewards of ownership. Our finance leases were related to property and equipment, primarily computer hardware, all of which expired in the year ended December 31, 2022.
In November 2023, we signed a lease for our new headquarters that continues to be located in Chicago, Illinois. We had access to the facility effective December 2023 and the lease expires on December 15, 2025.
We previously leased our headquarters located in Chicago, Illinois ("600 West Chicago"). During the year ended December 31, 2022, we reassessed the term of our 600 West Chicago operating lease as we were reasonably certain to exercise our option to early terminate the lease. As a result, our expected future minimum lease payments related to that lease were modified. Our reassessment included an increase in our Accrued expenses and other current liabilities of $11.6 million, a decrease to our long-term Operating lease obligations of $25.6 million, a decrease to our Right-of-use assets - operating leases, net of $9.5 million in the Consolidated Balance Sheets and a gain of $4.5 million in Restructuring and related charges in the Consolidated Statements of Operations. Refer to Note 13, Restructuring and Related Charges for additional information on the gain recognized. In January 2023, we exercised our option to early terminate our lease at 600 West Chicago effective on January 31, 2024, which required us to pay a penalty of $9.6 million with our early termination notice.
We subleased a portion of 600 West Chicago to Uptake, Inc. ("Uptake"), a Lightbank LLC portfolio company as a related party transaction. The sublease was a market rate transaction on terms that we believe are no less favorable than would have been reached with an unrelated party. As part of our reassessment of 600 West Chicago lease and early termination option noted above, we modified the sublease term to expire on January 30, 2024, as well. Given the uncertainty of collectability of our sublease income with Uptake, we recognized impairment of $1.8 million related to that portion of the right-of-use assets - operating leases for the year ended December 31, 2022, which is presented in Restructuring and related charges on the Consolidated Statements of Operations. In the first quarter of 2023, we initiated a lawsuit against Uptake for breach of the lease agreement and settled that lawsuit in the fourth quarter of 2023. See note 9, Commitments and Contingencies for additional information.
The following summarizes right-of-use assets as of December 31, 2023 and 2022 (in thousands):
December 31, 2023December 31, 2022
Right-of-use assets - operating leases$18,099 $60,204 
Less: accumulated depreciation and amortization (15,902)(48,077)
Right-of-use assets - operating leases, net$2,197 $12,127 

For the year ended December 31, 2022, we determined a downward revision of our forecast in the second quarter of 2022 and further downward revision in the fourth quarter of 2022 each required us to evaluate our long-lived assets for impairment. As a result of our interim quantitative assessments, we recognized impairment related to our right-of-use assets - operating leases of $7.8 million within our International segment, which is presented in Long-lived asset impairments on the Consolidated Statements of Operations. We also recognized impairment for our right-of-use assets - operating leases related to our 2020 Restructuring Plan of $1.2 million, which is presented in Restructuring and related charges on the Consolidated Statements of Operations. See Note 13, Restructuring and Related Charges, for more information
Due to actions taken under our 2020 Restructuring Plan, we recognized impairment of $6.8 million related to right-of-use assets - operating leases for the year ended December 31, 2021, which are presented in Restructuring and related charges on the Consolidated Statements of Operations. See Note 13, Restructuring and Related Charges, for more information.
The following table summarizes our lease costs and sublease income for the years ended December 31, 2023, 2022 and 2021 (in thousands):
Year Ended December 31,
202320222021
Financing lease cost:
Amortization of right-of-use assets$— $543 $3,621 
Interest on lease liabilities— 12 120 
Total finance lease cost— 555 3,741 
Operating lease cost (1)
10,962 20,880 25,346 
Variable lease cost (2)
6,332 7,966 6,378 
Short-term lease cost58 57 83 
Sublease income, gross (3)
(6,039)(3,949)(4,650)
Total lease cost$11,313 $25,509 $30,898 
(1)Operating lease costs presented as Selling, general and administrative and Restructuring and related charges in the Consolidated Statements of Operations totaled $8.6 million and $2.4 million for the year ended December 31, 2023, $15.7 million and $5.2 million     for the year ended December 31, 2022 and $17.6 million and $7.8 million for the year ended December 31, 2021.
(2)Variable lease costs presented as Selling, general and administrative and Restructuring and related charges in the Consolidated Statements of Operations totaled $3.7 million and $2.6 million for the year ended December 31, 2023, $5.6 million and $2.4 million for the year ended December 31, 2022 and $4.7 million and $1.7 million for the year ended December 31, 2021.
(3)Sublease income, gross primarily presented as Restructuring and related charges in the Consolidated Statements of Operations for the years ended December 31, 2023 and entirely for the years ended December 31, 2022 and 2021. Additionally, for the year ended December 31, 2023, sublease income, gross includes the settlement related to Uptake. See Note 9, Commitments and Contingencies for additional information.
As of December 31, 2023, the future payments under operating leases for each of the next five years and thereafter are as follows (in thousands):
Operating Leases
20247,408 
20252,401 
2026— 
2027— 
2028— 
Thereafter — 
Total minimum lease payments9,809 
Less: Amount representing interest(306)
Present value of net minimum lease payments9,503 
Less: Current portion of lease obligations(7,121)
Total long-term lease obligations$2,382 
As of December 31, 2023, we do not have any material non-cancelable operating lease commitments that have not yet commenced.
As of December 31, 2023 and 2022, the weighted-average remaining lease term and weighted-average discount rate for our operating leases were as follows:
December 31, 2023December 31, 2022
Weighted-average lease term1 year1 year
Weighted-average discount rate5.8 %6.4 %