Leases

3 Months Ended

Mar. 31, 2024

Note 5 — Leases

All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease right-of-use (“ROU”) assets and non-current operating lease liabilities are included as individual line items in the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Leases with an initial term of twelve months or less are not recorded in the Consolidated Balance Sheets and are not material.

The components of lease expense were as follows (in thousands):


	For the Three Months Ended March 31,
	2024			2023
Operating lease cost	$	3,094		$	3,314
Short-term lease cost		214			261
Variable lease cost		1,230			785
Sublease income		(130	)		(131	)
Total lease cost	$	4,408		$	4,229

Additional lease information is summarized in the following table (in thousands, except lease term and discount rate):


	For the Three Months Ended March 31,
	2024			2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,630		$	3,374
Operating lease ROU assets obtained in exchange for lease obligations	$	408		$	1,323
Weighted-average remaining lease term - operating leases (years)		4.1			4.9
Weighted-average discount rate - operating leases		4.2	%		4.3	%

Future minimum lease payments under non-cancelable leases and estimated future sublease cash receipts from non-cancelable arrangements as of March 31, 2024 are as follows (in thousands):


	Operating Lease			Sublease
	Payments			Cash Receipts
2024 (remainder)	$	12,209		$	471
2025		13,933			—
2026		12,325			—
2027		5,707			—
2028		2,875			—
Thereafter		6,024			—
Total lease payments and estimated sublease cash receipts		53,073		$	471
Less imputed interest		(4,515	)
Present value of lease liabilities	$	48,558

Lease balances as of March 31, 2024 are as follows (in thousands):


Operating lease ROU assets	$	34,380

Short-term operating lease liabilities (1)	$	14,086
Non-current operating lease liabilities		34,472
Total operating lease liabilities	$	48,558

(1)

Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets.

The Company’s leases do not contain residual value guarantees, material restrictions, or covenants.

During the three months ended March 31, 2024, the Company recorded a $3.2 million ROU asset impairment and $0.6 million of leasehold improvements impairments related to closing the 11th floor of its offices located at 150 Spear Street, San Francisco, California. During the three months ended March 31, 2023, the Company recorded a $0.4 million ROU asset impairment related to closing the 10th floor of its offices located at 150 Spear Street, San Francisco, California. The impairments are included in restructuring and related costs in the Consolidated Statements of Operations. As a result of the impairments, the ROU assets were required to be recorded at their estimated fair values as Level 3 non-financial assets. The fair values of the asset groups were determined using a discounted cash flow model, which required the use of estimates, including projected cash flows for the related assets, the selection of a discount rate used in the model, and regional real estate industry data.