Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 80

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 80
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 30,Nine Months Ended September 30,2025202420252024Operating lease cost$3,407 $2,356 $8,415 $7,177 Short-term lease cost259 481 791 1,246 Variable lease cost1,300 1,324 3,916 3,972 Total$4,966 $4,161 $13,122 $12,395 

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Sublease income totaled $0.3 million and $1.0 million for each of the three and nine months ended September 30, 2025 and 2024. Lease Impairment Charges During the second quarter of 2024, we initiated actions to reduce the footprint of our leased office spaces. During the three months ended September 30, 2024, we recorded non-cash lease impairment charges of $5.5 million within general and administrative expenses in our consolidated statements of operations related to the two ROU assets. The non-cash lease impairment charges represent the amount the carrying value of the two asset groups exceeded their estimated fair values. The asset groups represented two separate floors within our corporate headquarters facility. The fair values of the two asset groups were measured using discounted cash flow models based on market rents and sublease incomes projected over the remaining lease terms.During the third quarter of 2025, we recognized an incremental $0.8 million lease impairment charge related to one of the floors within our corporate headquarters that we ceased use of during the second quarter of 2024. The impairment charge represents the amount the carrying value of the underlying asset exceeded its estimated fair value, which was determined by utilizing a discounted cash flow approach that incorporated lower than previously expected sublease income assumptions based on current market conditions. Supplemental Lease InformationSupplemental balance sheet information related to operating leases as of September 30, 2025 and December 31, 2024 is presented in the following table (in thousands, except for lease term and discount rate):As ofSeptember 30, 2025December 31, 2024Right-of-use assets for operating leases$29,110$31,081Operating lease liabilities, current$13,110$12,378Operating lease liabilities, net of current portion47,76952,189Total operating lease liabilities$60,879$64,567Weighted average remaining lease term (in years)5.76.5Weighted average discount rate9.4 %9.4 %Sup