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Leases | 6 Months Ended
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Jun. 30, 2023
Leases [Abstract] |
Leases | NOTE 13 – LEASES The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates thr ough 2030. Certain leases offer the option to renew for up to ten years and to terminate before the expiration date. Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and right-of-use assets calculation. The Company subleases certain real estate to third parties. The sublease portfolio consists of operating leases for previously exited office space. Certain subleases include variable payments for operating costs. The subleases are generally co-terminus with the head lease, or shorter. Subleases do not include any residual value guarantees or restrictions or covenants imposed by the leases. Income from subleases is recognized as a reduction to selling, general and administrative expenses. As a result of consolidating our global real estate footprint and decisions to vacate and sublease certain offices following the Spin-Off, the Company recorded impairment charges of $1.1 million to r educe the carrying amount of certain operating lease right-of-use (“ROU”) assets and property and equipment, including leasehold improvements, during the six months ended June 30, 2023. The Company determined that it may not be able to fully recover the carrying amount of the leased offices due to a change in the manner in which the offices are being used, a significant decrease in the expected market price of the leased asset, and expected delays in subleasing the space based on the current real estate leasing market. The Company estimated the fair value using a discounted cash flows approach with assumptions such as expectations of cash flows from projected sublease income, occupancy estimates and its outlook for the local real estate market. The components of operating lease costs were as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Fixed lease cost (1) |  | $ | 5,325 |  |  | $ | 4,901 |  |  | $ | 10,483 |  |  | $ | 9,924 |
Variable lease cost |  |  | 1,457 |  |  |  | 1,418 |  |  |  | 2,944 |  |  |  | 2,483 |
Less: sublease income |  |  | (2,593 | ) |  |  | (2,705 | ) |  |  | (5,273 | ) |  |  | (4,811 | )
Total operating lease cost |  | $ | 4,189 |  |  | $ | 3,614 |  |  | $ | 8,154 |  |  | $ | 7,596 |
(1) Includes short-term leases expensed on a straight-line basis. The following table presents supplemental cash flow information arising from lease transactions (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Cash payments included in the measurement of operating lease liabilities |  | $ | 5,000 |  |  | $ | 4,865 |  |  | $ | 10,208 |  |  | $ | 9,900 |
Operating ROU assets obtained in exchange for lease obligations |  | $ | 4,013 |  |  | $ | 1,195 |  |  | $ | 4,013 |  |  | $ | 1,779 |
The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:
|  | June 30, 2023 |  |  | December 31, 2022 |
Weighted-average remaining lease term (in years) |  |  | 3.65 |  |  |  | 3.69 |
Weighted-average discount rate |  |  | 5.2 | % |  |  | 5.1 | %
Future minimum lease payments and related lease liabilities as of June 30, 2023 were as follows (in thousands):
Year Ending December 31: |  | Operating Lease Payments (1) |  |  | Sublease Income |  |  | Net Operating Lease Payments |
2023 (remaining 6 months) |  | $ | 8,782 |  |  | $ | (3,867 | ) |  | $ | 4,915 |
2024 |  |  | 18,079 |  |  |  | (7,849 | ) |  |  | 10,230 |
2025 |  |  | 16,442 |  |  |  | (7,671 | ) |  |  | 8,771 |
2026 |  |  | 8,582 |  |  |  | (1,055 | ) |  |  | 7,527 |
2027 |  |  | 3,818 |  |  |  | — |  |  |  | 3,818 |
Thereafter |  |  | 3,405 |  |  |  | — |  |  |  | 3,405 |
Total lease payments |  |  | 59,108 |  |  | $ | (20,442 | ) |  | $ | 38,666 |
Less: imputed interest |  |  | (5,695 | ) |  |  |  |  |  |
Present value of operating lease liabilities |  | $ | 53,413 |  |  |  |  |  |  |
Less: operating lease liabilities, current portion |  |  | (15,592 | ) |  |  |  |  |  |
Noncurrent operating lease liabilities |  | $ | 37,821 |  |  |  |  |  |  |
(1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.

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- References No definition available. + 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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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