Leases

9 Months Ended

Sep. 30, 2022

4. Leases

As of September 30, 2022, our lease portfolio consists entirely of operating leases, most of which are 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 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 nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease cost	$	1,708	$	1,659	$	4,968	$	4,984
Short-term lease cost	170		23		334		77
Variable lease cost	952		947		2,878		1,744
Total	$	2,830	$	2,629	$	8,180	$	6,805

Supplemental Lease Information

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


	As of
	September 30, 2022			December 31, 2021
Right-of-use assets for operating leases	$	31,841		$	27,897

Operating lease liabilities, current	$	7,434		$	8,110
Operating lease liabilities, net of current portion	52,710			48,784
Total operating lease liabilities	$	60,144		$	56,894

Weighted average remaining lease term (in years)	9.0			9.5

Weighted average discount rate	9.5		%	9.5		%

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating cash outflows for operating leases	$	2,099	$	1,792	$	6,258	$	5,295

Amortization of operating lease ROU assets	364		685		995		1,380
Interest expense on operating lease liabilities	1,332		521		3,957		1,448

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


	Operating Leases
2022 (excluding the nine months ended September 30, 2022)	$	2,040
2023	8,367
2024	9,464
2025	10,202
2026	10,603
2027	10,892
Thereafter	44,762
Total lease payments	96,330
Less: imputed interest	(36,186)
Total	$	60,144