Leases

6 Months Ended

Jun. 30, 2021

We have operating and finance leases for our corporate offices and other service agreements. Our leases have remaining lease terms of less than one to five years, some of which include options to extend.

In connection with the leases, we recognized operating lease right of use assets of $0.3 million and $0.6 million and an aggregate lease liability of $6.0 million and $12.9 million in our condensed consolidated balance sheet as of June 30, 2021 and December 31, 2020, respectively.

On July 13, 2020, the Company announced its decision to transition to an employee-centric model under which employees will work remotely rather than in traditional offices. In connection with this decision, the Company abandoned 14

leases in its global portfolio of office leases during 2020. As a result, the Company recognized accelerated amortization to fully reduce the carrying value of the associated right of use assets between the decision date and the cease use date. During the second quarter of 2021, the Company decided to reoccupy some of its leased space to provide its employees with the option of working in an office space environment if they choose to do so. There were no changes to the accounting for the lease liabilities associated with the leased office spaces. During the three months ended June 30, 2021, we had a $3.3 million gain resulting from the settlement of leases.

As of June 30, 2021, due to a dispute with one of the leases in Israel, the Company was required to pledge cash as collateral security to be maintained at an Israeli bank. The collateral security would remain in control of the bank, to be available in order to satisfy outstanding obligations under the lease contracts. Accordingly, the Company had cash at an Israeli bank of approximately $1.3 million at June 30, 2021, which is recorded as restricted cash in Prepaid expenses and other current assets in the condensed consolidated balance sheets.

We continue to actively assess our global lease portfolio. However, any additional de-recognition of right of use assets and incurrence of various one-time expenses in connection with early termination of additional leases are not expected to be material to our financial condition or results of operations.

Supplemental cash flow information related to leases for the periods listed are as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	856	$	2,131	$	1,243	$	4,117
Operating cash flows for finance leases	85		—		179		—
Financing cash flows for finance leases	869		—		1,728		—

The components of lease costs for the quarters ended June 30, 2021 and 2020 are as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands)
Finance lease cost
Amortization of right of use assets	$	900	$	—	$	1,788	$	—
Interest	85		—		179		—
Operating lease cost	1,624		5,367		3,481		6,764
Total lease cost	$	2,609	$	5,367	$	5,448	$	6,764


	June 30, 2021		June 30, 2020
Weighted Average Remaining Lease Term:
Operating leases	3.0 years		3.4 years
Finance leases	2.3 years		—

Weighted Average Discount Rate:
Operating leases	7	%	7	%
Finance leases	4	%	—	%

Supplemental balance sheet information related to leases was as follows:


	Classification on the Consolidated Balance Sheet	June 30, 2021		December 31, 2020
		(In thousands)
Assets
Operating right of use assets	Operating lease right of use assets	$	307	$	614
Finance right of use assets	Property and equipment, net	8,263		10,045

Liabilities
Current liabilities:
Operating lease liability	Operating lease liability	$	2,711	$	5,718
Finance lease liability	Accrued expenses and other current liabilities	3,563		3,488
Non-current liabilities:
Operating lease liability	Operating lease liability, net of current portion	3,250		7,180
Finance lease liability	Other liabilities	4,307		6,176

Future minimum lease payments under non-cancellable operating and finance leases (with an initial or remaining lease terms in excess of one year) are as follows:


	June 30, 2021
	Operating Leases		Finance Leases
	(In thousands)
2021 (remaining six months for June 30, 2021)	$	1,740	$	1,907
2022	2,619		3,813
2023	884		2,500
2024	534		—
2025	639		—
Thereafter	266		—
Total minimum lease payments	6,682		8,220
Less: present value adjustment	(721)		(350)
Present value of lease liabilities	$	5,961	$	7,870

The timing and amounts of future minimum lease payments under non-cancellable operating leases in the above table may be subject to change as a result of the restructuring. For more information, see Note 13 – Restructuring.