Annual report pursuant to Section 13 and 15(d)

Right-of-Use Assets and Lease Liabilities

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Right-of-Use Assets and Lease Liabilities
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Right-of-Use Assets and Lease Liabilities Right-of-Use Assets and Lease Liabilities
The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed, and if the arrangement creates enforceable rights and obligations. Under Topic 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract.
The Company leases office facilities under operating leases in various domestic and foreign locations with initial terms ranging from 1 to 12 years. Some leases include one or more options to extend the term of the lease, generally at the Company’s sole discretion, with renewal terms that can extend the lease term up to 5 years. In addition, certain leases give the Company, the lessor, or both parties the right to terminate. Options to extend a lease are included in the lease term when it is reasonably certain that the Company will exercise the option. Options to terminate a lease are excluded from the lease term when it is reasonably certain that the Company will not exercise the option. The Company’s leases generally do not contain any material restrictive covenants or residual value guarantees.
The Company’s operating leases were as follows:
December 31,
2023 2022
(in thousands)
Right-of-use assets, net (1)
$ 6,150 

$ 8,423 
Current operating lease liabilities (2)
$ 3,754  $ 5,509 
Operating lease liabilities, long-term (2)
8,909  10,055 
Total operating lease liabilities $ 12,663  $ 15,564 
(1)Includes impact of accelerated expense on abandoned right-of-use assets related to the global restructuring plan in 2023. See Note 24 — Restructuring and Related Charges for additional information.
(2)Current and long-term operating lease liabilities are recorded in accrued expenses and other current liabilities and other non-current liabilities, respectively, on the Company’s consolidated balance sheets.
The components of lease cost are recorded in selling, general, and administrative expenses and were as follows:
 Year Ended December 31,
2023 2022
(in thousands)
Operating lease cost $ 5,131  $ 3,745 
Short-term lease cost 406  435 
Variable lease cost 48  47 
Sublease income (1,067) (483)
Total lease cost $ 4,518  $ 3,744 
Operating lease cost is recognized on a straight-line basis over the lease term.
Total lease expense for all operating leases for the year ended December 31, 2021 was $7.2 million.
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
2023 2022
(in thousands)
Cash paid for amounts included in measurement of operating lease liabilities $ 6,277  $ 5,687 
ROU assets obtained in exchange for operating lease liabilities $ 897  $ 11,396 
The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases were as follows:
December 31,
2023 2022
Weighted-average remaining lease term (in years) 3.99 4.07
Weighted-average discount rate 5.4  % 4.7  %
Maturities of the Company’s operating lease liabilities as of December 31, 2023 were as follows:
Year Ended December 31,
(in thousands)
2023 $ 4,649 
2024 3,345 
2025 2,049 
2026 1,552 
2027 1,302 
Thereafter 1,188 
Total lease payments 14,085 
Less amount representing interest (1,422)
Total $ 12,663 
Cease-use Liabilities
The Company exited certain facilities in connection with cost savings initiatives and a global restructuring plan As a result, the Company recorded a cease-use liability in 2021. The cease-use liability of $9.0 million was reclassified and treated as a reduction to the beginning ROU asset recorded upon adoption of ASC 842, Leases, on January 1, 2022. Cease-use costs were $0.2 million during the year ended December 31, 2022, and are included as a component of selling, general and administrative expenses in the consolidated statements of operations. Cease-use costs were $10.7 million during the year ended December 31, 2021. In December 2022, the Company revised its projected sublease income and estimates of the costs the Company is obligated to pay under certain of its lease agreements. The change in estimate resulted in a reduction of $0.7 million to cease-use costs.
Cease-use costs are included in accrued expenses and other current liabilities and other non-current liabilities on the consolidated balance sheets as of December 31, 2023, and 2022. The following table summarizes the activity for the liability for cease-use costs for the periods presented:
Cease-use Liability
(in thousands)
Balance at December 31, 2020 $ — 
Cease-use costs 10,673 
Adjustments to deferred rent 1,168 
Cash payments (253)
Balance at December 31, 2021 11,588 
Cease-use costs 160 
Reclassified as a reduction to the beginning ROU asset upon adoption of ASC 842 (9,001)
Change in estimate (723)
Accretion of liability (194)
Payments (908)
Foreign currency translation (238)
Balance at December 31, 2022 684 
Accretion of liability (175)
Payments (24)
Foreign currency translation (37)
Balance at December 31, 2023
 $ 448