Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 20

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 20
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 this balance as revenue over the next 12 months with the remaining amount recognized thereafter.

4. LeasesAs of March 31, 2025, our lease portfolio consists entirely of operating leases for corporate offices. Our operating leases have remaining lease terms with various expiration dates through 2031, and some leases include options to extend the term for up to an additional 10 years.Lease CostsExpense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components (i.e., common area maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as maintenance costs, utilities, and service charges, are not included in right-of-use (“ROU”) assets or lease liabilities but rather are expensed as incurred and recorded as variable lease expense. We often receive customary incentives from our landlords such as tenant improvement allowances (“TIAs”) and rent abatement periods, which effectively reduce total lease payments owed for the leases. The following table sets forth the components of lease expense for the three months ended March 31, 2025 and 2024 (in thousands, exclusive of sublease income):Three Months Ended March 31,20252024Operating lease cost$2,393 $2,411 Short-term lease cost250 332 Variable lease cost1,372 1,313 Total$4,015 $4,056 Sublease income totaled $0.3 million for each of the three months ended March 31, 2025 and 2024. 

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Supplemental Lease InformationSupplemental balance sheet information related to operating leases as of March 31, 2025 and December 31, 2024 is presented in the following table (in thousands, except for lease term and discount rate):As ofMarch 31, 2025December 31, 2024Right-of-use assets for operating leases$31,645$31,081Operating lease liabilities, current$12,798$12,378Operating lease liabilities, net of current portion51,51852,189Total operating lease liabilities$64,316$64,567Weighted average remaining lease term (in years)6.26.5Weighted average discount rate9.4 %9.4 %Supplemental cash flow and expense information related to operating leases for the three months ended March 31,