Annual report pursuant to Section 13 and 15(d)

Leases

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Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use (ROU) asset representing its right to use the underlying asset for the lease term. The Company adopted this standard on January 1, 2021. The Company primarily has operating leases for office space. The leases expire on various dates between 2022 and 2029, some of which could include options to extend the lease. In 2014, the Company leased office space in San Francisco for a term of seven years with an option to extend. In 2021, the company exercised its option to extend the San Francisco lease to 2029.
Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As these leases do not provide an implicit rate, ForgeRock uses its incremental borrowing rate based on the information available at the lease’s commencement date in determining the present value of lease payments. The Company considers information including, but not limited to, the lease term, the Company’s credit rating and interest rates of similar debt instruments with comparable credit ratings and security interests. The lease right-of-use assets are increased by any lease prepayments made and reduced by any lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that ForgeRock will exercise the extension option. The Company’s operating leases typically include non-lease components such as common-area maintenance costs. ForgeRock has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on the Company’s consolidated balance sheet, while the associated lease payments are recorded in the consolidated statements of operations on a straight-line basis over the lease term.
The following table summarizes the components of lease expense, which are included in operating expenses in the Company’s statements of operations and comprehensive loss (in thousands):
Year ended December 31, 2021
Operating lease expense $ 2,375 
Variable lease expense 703 
Total lease expense $ 3,078 
Variable lease payments include amounts relating to common area maintenance, real estate taxes and insurance and are recognized in the statements of operations and comprehensive loss as incurred.

The following table summarizes supplemental information related to leases:
Year ended December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (in thousands) $ 2,636
Weighted-average remaining lease term (years)
Operating leases 7
Weighted-average discount rate
Operating leases 5.3  %
The following table summarizes the maturities of lease liabilities as of December 31, 2021 (in thousands):
2022 $ 2,447 
2023 2,268 
2024 2,150 
2025 1,928 
Thereafter 6,669 
Total future minimum lease payments 15,462 
Less: imputed interest (2,605)
Present value of future minimum lease payments 12,857 
Less: Current portion of operating lease liability (1,820)
Long-term operating lease liability $ 11,037 
As previously disclosed in the Company’s annual consolidated financial statements for the year ended December 31, 2020, and under previous lease accounting standard ASC 840, Leases, the aggregate future non-cancelable minimum rental payments on its operating leases as of December 31, 2020 were as follows (in thousands):
2022 $ 2,455 
2023 1,444 
2024 887 
2025 762 
2026 and years thereafter
1,355 
Total minimum future rentals
$ 6,903