Leases

6 Months Ended

Jun. 30, 2022

4. Leases

As of June 30, 2022, our lease portfolio consists entirely of operating leases, most of which are for corporate offices. Our operating leases have remaining lease terms of roughly 1 year to 10 years, some of which include options to extend the leases for up to an additional 10 years.

Lease Costs

Expense 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 based on future obligations, are not included in ROU assets or lease liabilities but rather are expensed as incurred and recorded as variable lease expense.

The following table sets forth the components of lease expense for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	1,626	$	1,695	$	3,260	$	3,325
Short-term lease cost	76		13		164		54
Variable lease cost	953		772		1,926		797
Total	$	2,655	$	2,480	$	5,350	$	4,176

Supplemental Lease Information

Supplemental balance sheet information related to operating leases as of June 30, 2022 and December 31, 2021 was as follows (in thousands, except for lease term and discount rate):


	As of
	June 30, 2022			December 31, 2021
Right-of-use assets for operating leases	$	27,113		$	27,897

Operating lease liabilities, current	$	7,988		$	8,110
Operating lease liabilities, net of current portion	47,210			48,784
Total operating lease liabilities	$	55,198		$	56,894

Weighted average remaining lease term (in years)	9.1			9.5

Weighted average discount rate	9.5		%	9.5		%

Supplemental cash flow and expense information related to operating leases for the six months ended June 30, 2022 and 2021 was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating cash outflows for operating leases	$	2,074	$	1,754	$	4,159	$	3,503

Amortization of operating lease ROU assets	325		353		631		677
Interest expense on operating lease liabilities	1,305		468		2,626		870

A summary of our future minimum lease commitments under non-cancellable leases as of June 30, 2022 is as follows (in thousands):


	Operating Leases
2022 (excluding the six months ended June 30, 2022)	$	4,243
2023	8,273
2024	8,584
2025	9,283
2026	9,357
Thereafter	48,775
Total lease payments	88,515
Less: imputed interest	(33,317)
Total	$	55,198