Shutterstock, Inc. · NYSE:SSTK
Shutterstock — Investor Day (February 2023)
96 slides from Shutterstock's investor day presentation, Feb 28, 2023
Slide 1: Investor Day 2023
Investor Day 2023 February 28, 2023 Proprietary and confidential
Slide 2: Forward Looking Statement
Forward Looking Statement Information set forth in this communication contains forward-looking statements, including without limitation, the long-term effects of investments in our business, the future success and financial impact of new and existing product offerings; our ability to consummate acqui
Slide 3: Today's Presenters
Today’s Presenters Paul Hennessy Jarrod Yahes Meghan Schoen Sejal Amin Chief Executive Officer Chief Financial Officer Chief Product Officer Chief Technology Officer Dade Orgeron Candice Murray Aiden Darné Vice President, 3D Innovation Vice President, Editorial Vice President, Studios Proprietary and confid
Slide 4: Today's Presenters
Today’s…avatars Paul Hennessy Jarrod Yahes Meghan Schoen Sejal Amin Chief Executive Officer Chief Financial Officer Chief Product Officer Chief Technology Officer Dade Orgeron Candice Murray Aiden Darné Vice President, 3D Innovation Vice President, Editorial Vice President, Studios Proprietary and confident
Slide 5: Agenda
Agenda 1. A Powerful Business Model 2. Content Engine – Differentiated Creative Ingredients a. 3D b. Editorial 3. Creative Engine – Extending Our Customer Relationships a. Creative Flow b. Studios 4. Data Engine – Unlocking Our Content’s Power a. Data Training Sets b. Generative AI 5. Financial Disc
Slide 6: Over the Last 20 Years, Shutterstock Has Built a Durable Content Engine
Over the Last 20 Years, Shutterstock Has Built a Durable Content Engine “As a serial entrepreneur and small business owner, finding quality content for my marketing needs was a limiting factor. There was no place to buy images in an easy and cost-effective way. There were a couple of stock agencies a
Slide 7: Our Content Engine Drives Global Scale Resulting in a Powerful Business Model
Our Content Engine Drives Global Scale Resulting in a Powerful Business Model Comprehensive Content Library Global Scale and Operating Leverage 600 million 45 million 2 million 2 million 1.2 million $828 million 26.3% 57% 1,328 Images Videos Music Tracks Sound Effects 3D Models 2022 2022 EBITDA Reve
Slide 8: We Serve Our Customers Through Multiple Channels
We Serve Our Customers Through Multiple Channels 61% 39% ECOMMERCE REVENUE BY ENTERPRISE REVENUE BY GEOGRAPHY GEOGRAPHY All-In-One Self-Serve Offering for Individual Creatives & Tailored Content, Creative Services and Data Offering for Freelancers, Marketing Professionals, Small Business Owners Smal
Slide 9: Our Content Engine has Consistently Expanded into Faster Growing TAM's
Our Content Engine has Consistently Expanded into Faster Growing TAM’s Size Growth Digital Advertising Digital Advertising, Social Media,Proliferation Websites of Channels $4.3B 6% Proliferation of Websites & Blogs Images CAGR Music Streaming, Audio for the Metaverse, Digital Video $1.3B 7% Advertis
Slide 10: Mission and Purpose
mission Shutterstock is the end-to-end creative partner that empowers customers to tell the best versions of their stories. Our teams capture the moments, develop the tools, deliver the services, and provide the ingredients needed to simplify and supercharge creative storytelling. purpose We bridge
Slide 11: Our Content Engine Will Continue to Power the Core
Our Content Engine Will Continue to Power the Core Contributors Royalties CONTENT Content ENGINE Customers
Slide 12: Extend Our Customer Relationships and Create New Content Opportunities
Extend Our Customer Relationships and Create New Content Opportunities Contributors Royalties CONTENT Content ENGINE Customers CREATIVE ENGINE Templates + Styles + Fonts Create + Design + Publish
Slide 13: Unlock New Verticals, Products and Capabilities
Unlock New Verticals, Products and Capabilities New Products + Contributors Capabilities Partners DATA ENGINE Royalties CONTENT Content Metadata ENGINE Customers CREATIVE ENGINE Templates + Styles + Fonts Create + Design + Publish
Slide 14: Each Element of Our Platform Accelerates The Other
While in Different Stages of Maturity, Each Element of Our Platform Accelerates The Other New Products + Contributors Capabilities Partners DATA ENGINE Royalties CONTENT Content Metadata ENGINE Customers CREATIVE ENGINE Templates + Styles + Fonts Create + Design + Publish
Slide 15: Unlocking Additional Gears + Growing a Powerful & Differentiated Machine
Unlocking Additional Gears + Growing a Powerful & Differentiated Machine New Contributors Products + Capabilities Partners DATA ENGINE Royalties CONTENT Content Metadata ENGINE Performance Data Customers CREATIVE ENGINE Templates + Styles + Fonts Create + Design + Publish
Slide 16: Our Creative and Data Engines Extend Us Into New Growth Areas
Our Creative and Data Engines Extend Us Into New Growth Areas and Further Entrench Us With Existing Customers Proprietary and confidential 16
Slide 17: Content Engine - Differentiated Creative Ingredients
Content Engine - Differentiated Creative Ingredients Dade Orgeron, VP 3D Innovation | Candice Murray, VP Editorial Proprietary and confidential 17
Slide 18: Differentiated Content Ingredients Purpose-Built for Better Storytelling
Differentiated Content Ingredients Purpose-Built for Better Storytelling Contributors Royalties CONTENT Content ENGINE Customers Proprietary and confidential 18
Slide 19: 3D Enables Creators To Tell Seemingly Impossible Stories
3D Enables Creators To Tell Seemingly Impossible Stories Movies & Film Proprietary and confidential 19
Slide 20: 3D Enables Creators To Visualize Possibilities
3D Enables Creators To Visualize Possibilities Visualization Proprietary and confidential 20
Slide 21: 3D Enables Creators To Immerse The Viewer
3D Enables Creators To Immerse The Viewer Gaming & Immersive Proprietary and confidential 21
Slide 22: Extending 3D Content To New Horizons
Extending 3D Content To New Horizons New technologies are opening the door for more industries to enter the 3D space Machine Learning Metaverse & Web3 AR/VR/MR Drive Simulation Gamevertising Surgical Visualization Manufacturing Immersive Advertising Healthcare Education & Training Shipping Logistics
Slide 23: Meeting The Growing Demand For 3D Content
Meeting The Growing Demand For 3D Content Proprietary and confidential 23
Slide 24: Case Study: SciePro Human Anatomy
Case Study: SciePro Human Anatomy TurboSquid contributor SciePro has created a detailed, anatomically correct and comprehensive model of the male anatomy in 3D Proprietary and confidential 24
Slide 25: Releasing 3D From The Walled Garden Through Standardization
Releasing 3D From The Walled Garden Through Standardization Contributors A Complete 3D Platform Customers 3D content can be generated TurboSquid has created a complete 3D content Standardized models can be from a variety of industry management platform for publishing, managing, used in nearly any st
Slide 26: Generative AI Will Unleash 3D To The Masses
Generative AI Will Unleash 3D To The Masses Image to 3D Text to 3D Generative Creator Tools Procedural Scenes Generate custom 3D objects Generate 3D objects and scenes AI driven tools that enable Generate complete scenes from photos, illustrations or from descriptive prompts creators to modify and f
Slide 27: Editorial
Editorial Candice Murray, VP Editorial Proprietary and confidential 27
Slide 28: Why Our Editorial Business Matters
Why Our Editorial Business Matters Shutterstock Editorial Splash News Covers Top Stories across Entertainment, News, Covers Breaking News and Developing Stories across Sports, Royals, Fashion & More Entertainment & Celebrity Worldwide 10k+ events each year 24 / 7 / 365 Awards season, premieres, play
Slide 29: Shutterstock Editorial is a Full-Service Global Operation
Shutterstock Editorial is a Full-Service Global Operation Content Premium Content & Simplified Services Celebrity Partnerships Licensing Entertainment, Sports, Granting the rights to use for Live Event Coverage Fashion, News, Archival and Editorial and Commercial Use Global Contributors for: UGC for
Slide 30: Billions of Connections Everyday through Mass Global Use
Billions of Connections Everyday through Mass Global Use The force behind the content that reaches audiences and global communities daily through print, digital, social, film, streaming, television, branding and more! Proprietary and confidential 30
Slide 31: Editorial Content & Services is Highly Impactful for Shutterstock
Editorial Content & Services is Highly Impactful for Shutterstock Subscripti ons Our Strategic Rationale How We Win ● Continue growing network of photographers & videographers ● Complementary extension of our marketplace ● Innovate pricing & packaging, including subscription products ● Expansion of
Slide 32: Live Assignments & Brand Partnerships
Our Brand Name Powers Global Headlines: Live Assignments & Brand Partnerships Audible Listening Lodge, Sundance Film Celebs @ The Sundance SSTK Portrait Studio: Anne Hathaway, Bella Thorne, Tiffany Haddish Festival, Park City, Utah, USA - 19 Jan 2023 Proprietary and confidential 32
Slide 33: Our Brand Name Powers Global Headlines: Golden Globes 2023
Our Brand Name Powers Global Headlines: Golden Globes 2023 “Spent the last day of being 30 shooting my absolute dream of an assignment. Thank you @goldenglobes @shutterstocknow @shutterstock @people for this golden night!!” —Hunter Abrahms Insta Proprietary and confidential 33
Slide 34: Our Brand Name Powers Global Headlines: Super Bowl LVII
Our Brand Name Powers Global Headlines: Super Bowl LVII Performances Celebs & VIPS Proprietary and confidential 34
Slide 35: Our Brand Name Powers Global Headlines: Breaking News
Our Brand Name Powers Global Headlines: Breaking News Breaking News v Proprietary and confidential 35
Slide 36: Our Brand Name Powers Global Headlines: Breaking News
Our Brand Name Powers Global Headlines: Breaking News First Sightings Trending Proprietary and confidential 36
Slide 37: Global Storytelling: Theatrical Productions
Our Brand Name Powers Global Storytelling: Theatrical Productions One of the largest Royal archives globally —---- Dedicated Royal photographer Proprietary and confidential 37
Slide 38: Global Marketing: Advertising Campaigns
Our Brand Name Powers Global Marketing: Advertising Campaigns Christian Dior, Christian Dior, 30 Avenue Montaigne in Paris 1957 30 Avenue Montaigne in Paris 2022 Proprietary and confidential 38
Slide 39: Shutterstock Editorial: End-to-End Solutions that Power Global Storytelling
Shutterstock Editorial: End-to-End Solutions that Power Global Storytelling Right Click Here to Open Video in New Window Proprietary and confidential 39
Slide 40: Creative Engine - Extending Our Customer Relationships
Creative Engine - Extending Our Customer Relationships Meghan Schoen, Chief Product Officer | Aiden Darne, VP Studios Proprietary and confidential 40
Slide 41: Extending Customer Relationships
Extending Customer Relationships Custom Creative Services for Enterprise Customers Contributors Royalties CONTENT Content ENGINE Intuitive Self-Serve Design for Everyone Templates + Styles + Fonts Customers CREATIVE ENGINE Templates + Styles + Fonts Create Create + Design + Design + Publish + Publis
Slide 42: 30 Million People Visit Shutterstock Every Month With Creative Intent
30 Million People Visit Shutterstock Every Month With Creative Intent Source: SimilarWeb Proprietary and confidential 42
Slide 43: In The Past, They Would Discover With Us & Do Work Elsewhere
In The Past, They Would Discover With Us & Do Work Elsewhere Proprietary and confidential 43
Slide 44: ...and Doing Their Work Isn't Easy
…and Doing Their Work Isn’t Easy Right Click Here to Open Video in New Window Proprietary and confidential 44
Slide 45: Download & Upload Fatigue Across Multiple Platforms
Download & Upload Fatigue Across Multiple Platforms Proprietary and confidential 45
Slide 46: A New Way To Work: Creative Flow
A New Way To Work: Creative Flow Right Click Here to Open Video in New Window Proprietary and confidential 46
Slide 47: Fewer Clicks + Zero Learning Curve + Same Output
Fewer Clicks + Zero Learning Curve + Same Output Right Click Here to Open Video in New Window Proprietary and confidential 47
Slide 48: Making It Easier To Try Before You Buy
Making It Easier To Try Before You Buy Right Click Here to Open Video in New Window Proprietary and confidential 48
Slide 49: Data → Insights → Better Outcomes
Data → Insights → Better Outcomes 91% Typeface: Montserrat 86% Photo: Cheerful portrait, closes eyes, smile, pink wall… 93% Template: circle centered, square post Proprietary and confidential 49
Slide 50: Accelerating The Content Engine
Accelerating The Content Engine Conference campaign kit Campaign automated with Creative Flow Proprietary and confidential 50
Slide 51: Aiden Darné, VP Studios
Aiden Darné, VP Studios
Slide 52: Shutterstock Studios Provides End-to-End Production Services for Any Need
Shutterstock Studios Provides End-to-End Production Services for Any Need Right Click Here to Open Video in New Window Proprietary and confidential 52
Slide 53: Your Global Production Studio
Your Global Production Studio Amsterdam Copenhagen Brussels Berlin London Vienna Paris Toronto Bucharest Barcelona Milan Seoul New York Beijing Lisbon Athens Los Angeles Zurich Tokyo Madrid Shanghai Miami Dubai Mexico City Mumbai Bogotá Singapore Jakarta 2022 Highlights: 35+ Countries Shot São Paulo
Slide 54: Production capabilities
Production capabilities Experiential Photography Video Illustration Event Production Marketing 3D Content 3D Animation AR VR Games Proprietary and confidential 54
Slide 55: CPG + Beauty
CPG + Beauty Proprietary and confidential 55
Slide 56: Auto
Auto Proprietary and confidential 56
Slide 57: Social Media + Tech
Social Media + Tech Proprietary and confidential 57
Slide 58: Health & Pharma
Health & Pharma Proprietary and confidential 58
Slide 59: 3D
3D Proprietary and confidential 59
Slide 60: How We're Winning
How We’re Winning: 1 Global Production Expertise - Unrivaled Global Creative Network 2 Unmatched 3D Strategy - With Deep Multi-Platform Expertise 3 Highly Versatile World Class Production Capabilities 4 In-House-Everything Maximizes Budget and ROI 5 We Have Shutterstock’s Broader Offerings to Levera
Slide 61: Extended Reality Demo
Extended Reality Demo Aiden Darne, VP Studios Proprietary and confidential 61
Slide 62: Data Engine - Unlocking Our Content's Power
Data Engine - Unlocking Our Content’s Power Sejal Amin, Chief Technology Officer | Meghan Schoen, Chief Product Officer Proprietary and confidential 62
Slide 63: Using the Content Engine to Unlock Data Monetization Opportunity
Using the Content Engine to Unlock Data Monetization Opportunity New Products + Contributors Capabilities Partners DATA ENGINE Royalties CONTENT Content Metadata ENGINE Customers CREATIVE ENGINE Templates + Styles + Fonts Create + Design Create + Publish + Design + Publish Proprietary and confidenti
Slide 64: A Single Piece of Content
Title and Description Usage & Asset IT ALL BEGINS WITH Releases Type A SINGLE PIECE OF CONTENT Aesthetic Descriptive Scoring Keywords Available Usage For each piece of content, Shutterstock collects over Contributors File Format / 185 pieces of metadata across Artists Resolution Agencies a variety o
Slide 65: Understanding the 4 P's of Collecting First Party Data
Understanding the “4 P’s” of collecting first party, proprietary data at Shutterstock 3. Process 1. People Our proprietary technology scans the content and adds Our human review approximately 135 more process vets for quality, data points accuracy, enabling a variety of uses for 2. Platform partners
Slide 66: People. Platform. Process. New Opportunities
PEOPLE. PLATFORM. PROCESS. NEW OPPORTUNITIES Our rigorous metadata collection process results in actionable, near term use cases for partners Generative Models Autonomous Vehicles Content Moderation Security & Safety Authentication Defect Detection …what about the 4th “P”? Proprietary and confidenti
Slide 67: 4. Performance Data
4. Performance Data Connecting metadata with performance will automate PIECES OF marketing and advertising METADATA ● more engaging, higher-performing content ● more intelligent targeting ● creative storytelling ● greatest impact
Slide 68: Generative AI
Generative AI Meghan Schoen, Chief Product Officer Proprietary and confidential 68
Slide 69: Astronauts eating breakfast on Mars
Astronauts eating breakfast on Mars
Slide 70: Creativity At The Speed Of Your Imagination
Creativity At The Speed Of Your Imagination Right Click Here to Open Video in New Window Proprietary and confidential 70
Slide 71: The Core Of Shutterstock's Machine: Content + Metadata
The Core Of Shutterstock’s Machine CONTENT + METADATA are licensed to strategic partners to train generative models. contributors Training Set Images & Text Note: the model we use was trained on hundreds of millions of properly licensed Shutterstock images. OpenAI has not released further details ab
Slide 72: Differentiated & Customized
Differentiated & Customized User "Prompt" AI Image Generator Style Picker Language Translation Shutterstock layers on unique, differentiated value to models. Prompt Enrichment Bias Mitigation (DALL-E) Generative models trained on Shutterstock content are Generative Model not available to competitors
Slide 73: Following Our Proven Playbook
Following Our Proven Playbook New AI-generated content is rapidly growing the already expansive Shutterstock library contributors Contributor Fund Royalty Payouts Licensed Every AI-generated asset that Usage is licensed compensates Shutterstock contributors Generated Images Proprietary and confident
Slide 74: Generative Is Building Momentum
k NEW ACCOUNT SIGN-UPS Generative Is BUILDING k ACTIVE MOMENTUM GENERATIVE USERS engagement and activity (4 weeks out from launch) MILLION NEW IMAGES GENERATED *Since market launch - January 25, 2023 Proprietary and confidential 74
Slide 75: ...and we are moving quickly
…and we are moving quickly Jan 25: Ecommerce Market Launch Feb 9: Generative Integrated in Search Feb 17: Generative on Shutterstock Homepage Feb 8: Enterprise Market Launch Feb 10: Faster Generations & Like/Dislike Coming March: Zoom Out, Variations, Expanded Styles Proprietary and confidential 75
Slide 76: ...the Future of AI with Generative AI
Shutterstock Is… COMMERCIALIZING… POWERING… Dog bone DEVELOPING… ‘Add a dogbone’ …the Future of AI with Generative AI AI Image Editing – Coming Soon Proprietary and confidential 76
Slide 77: Financial Discussion
Financial Discussion Jarrod Yahes, CFO
Slide 78: Powerful Financial Model
Powerful Financial Model 1 2 3 4 Strong financial Multiple levers to drive Balanced framework Creative and Data foundation margin expansion for capital allocation Engines gaining scale Growing base of Deployment of cash flow for Content Engine fed with Operating leverage in G&A subscription revenue di
Slide 79: Strong Financial Foundation
Strong Financial Foundation (Revenue in $mm) 2nd Consecutive Year of Double Digit Revenue Growth in Enterprise Channel Launch of Flex Products Pond5 Acquisition TurboSquid & PicMonkey Acquisitions Launch of Studios $853 $828 $773 $836 Enterprise Sales Team Restructuring $667 $651 $623 2012-2023 CAGR
Slide 80: Subscription Revenue Becoming a Larger Part of the Revenue Mix
Subscription Revenue Becoming a Larger Part of the Revenue Mix… 2018 Revenue Mix 2022 Revenue Mix $623mm $828mm Total Revenue Total Revenue $214mm 149k $347mm 586k Subscription Subscription Subscribers Subscribers Revenue Revenue 7% 13% 4% 3x Total Revenue CAGR Subscription Non-Subscription Growth D
Slide 81: Enhancing Revenue Retention Across Both Sales Channels
… Enhancing Revenue Retention Across Both Sales Channels Enterprise Ecommerce Total Revenue Retention Subscription Revenue Retention Total Revenue Retention Subscription Revenue Retention +7% +3% Subscription Over-index Subscription Over-index 7% 11% 20k 5x 2% 8% 566k 2022 Total Enterprise 2022 Subs
Slide 82: Fueling Our Enterprise Channel Growth
Fueling Our Enterprise Channel Growth Firing on All Cylinders with Two Consecutive Years of Double-Digit Growth PEOPLE STRATEGIC SOLUTIONS PRODUCT MARKET FIT PREDICTABLE RENEWALS Distribution Channel SELLING Cross-sell and Upsell with Multi-Asset Drive Higher Retention, Powered by 250+ Sales and Edi
Slide 83: Committed to Growth in Our Ecommerce Channel
Committed to Growth in Our Ecommerce Channel Opportunity to Quickly Move Past Macro Headwinds Deliver Data-driven Customer-centric Acquisition Value-Added Teams Experimentation & Retention Features & Channel Functionality Fundamentals Generative AI, Creative Flow, Product, Marketing and Engineering
Slide 84: Multiple Levers to Drive Margin Expansion
Multiple Levers to Drive Margin Expansion (EBITDA in $mm) Reinvestment into platform to reinvigorate growth / Focus on margin expansion / Optimization of marketing spend / Restructuring of royalty rate in 2020 $228 $218 $193 $220 2012-2023 CAGR: 19% $155 $105 $95 $88 $96 $85 $71 $53 $35 2012 2013 20
Slide 85: Cost Optimization Combined with Operating Leverage Will Enhance EBITDA Margins
Cost Optimization Combined with Operating Leverage Will Enhance EBITDA Margins EBITDA Margin Expansion G&A as % of Revenue 26.8% 17.5% 26.3% 16.9% 16.0% (0.5%) (0.5%) 25.0% (0.5%) (0.5%) (0.5%) 23.2% 2020 2021 2022 2023E 2020 2021 2022 2023E 2024E 2025E 2026E 2027E Up to +50 +839 bps +180 bps +135 b
Slide 86: Proven Capital Allocator with Opportunity for Upside Through M&A
Proven Capital Allocator with Opportunity for Upside Through M&A Capital Allocation (2019-2022) $220 $216 Additional 2%-4% Return per Annum $73 $43 $35 $28 $31 $26 $26 $24 $26 $17 $9 $0 $2 $0 $0 $0 $3 $3 Capex including M&A Dividends Share Repurchases Content Acquisition Growth Investment $438mm $12
Slide 87: Track Record of Disciplined & Programmatic M&A
We Have a Track Record of Disciplined & Programmatic M&A Nov 2020 Jul 2021 May 2022 AI-Generated Music AI Capabilities Video Marketplace Editorial ~$35 million $210 million Feb 2021 Sep 2021 Creative Intelligence 3D Marketplace SaaS Design / Editing $5 million investment $75 million $110 million Add
Slide 88: Data Engine Commercial Strategy
Data Engine Commercial Strategy Focused on Near Term Revenue Opportunity Plus Technology Access Title and Description Usage & Asset Data Training Sets Releases Type Commercial Strategy Margin Profile Opportunity ● Data flywheel ● Consistent unit ● Enhance recurring nature Aesthetic Descriptive Scoring
Slide 89: Data Partnerships are Getting Larger and the Pipeline is Broadening
Data Partnerships are Getting Larger and the Pipeline is Broadening What We’ve Seen So Far… Looking Ahead… Larger Deals Broadening of the Pipeline 2020 2023 ● Large cap tech companies ● Large cap tech demand with fully ● Experimenting funded dedicated budgets ● Limited budgets ● POCs quickly moving
Slide 90: Generative AI Commercial Strategy
Generative AI Commercial Strategy Focused on Simplicity and Pervasiveness with Consistent Unit Economics Generative AI Commercial Strategy Margin Profile Opportunity ● Simple unit pricing ● Royalties comprised of AI ● Handhold Enterprise client ● Make it pervasive partner & contributor pool relations
Slide 91: By 2027, Creative and Data Engines Will Power Shutterstock
By 2027, Creative and Data Engines Will Power Shutterstock in the Way Content Does Today New Contributors Products + Capabilities Partners DATA ENGINE Royalties CONTENT Content Metadata ENGINE Performance Data Customers CREATIVE ENGINE Templates + Styles + Fonts Create + Design + Publish Proprietary
Slide 92: Closing Thoughts
Closing Thoughts Paul Hennessy, Chief Executive Officer Proprietary and confidential 92
Slide 93: Proprietary and confidential
Proprietary and confidential 93
Slide 94: Appendix
Appendix Proprietary and confidential 94
Slide 95: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, our management considers certain financial measures that are not prepared in accordance with GAAP, collectively ref
Slide 96: Reconciliation of Non-GAAP Financial Information to GAAP
Reconciliation of Non-GAAP Financial Information to GAAP (in thousands) We define adjusted EBITDA as net income adjusted for depreciation and amortization, write-off of property and equipment, gain on sale of webdam, non-cash equity-based compensation, impairment of lease and related assets, foreign