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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases
4. Leases

As of December 31, 2022, our lease portfolio consists entirely of operating leases, all 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.
Right-of-Use (“ROU”) Assets and Lease Liabilities

At the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Operating leases with a term greater than one year are recognized on the consolidated balance sheet as ROU assets, lease liabilities, and, if applicable, long-term lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected not to recognize on our consolidated balance sheets leases with a term of one year or less.

Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rates within most of our leases are generally not determinable; therefore, we estimate our incremental borrowing rate to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same terms as the lease. We consider various factors, including our level of collateralization, estimated credit rating, and the currency in which the lease is denominated. Operating lease ROU assets also include any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option..

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 years ended December 31, 2022, 2021 and 2020 (in thousands):

Year Ended December 31,
202220212020
Operating lease cost$6,950 $6,619 $6,649 
Finance lease costs:
Amortization of right-of-use assets— — 1,242 
Interest on lease liabilities— — 150 
Short-term lease cost583 149 565 
Variable lease cost3,817 2,713 281 
Total$11,350 $9,481 $8,887 
Supplemental Lease Information

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

As of December 31,
20222021
Right-of-use assets for operating leases$37,248$27,897
Operating lease liabilities, current$8,681$8,110
Operating lease liabilities, net of current portion57,22548,784
Total operating lease liabilities$65,906$56,894
Weighted average remaining lease term (in years)8.49.5
Weighted average discount rate9.4 %9.5 %

Supplemental cash flow and expense information related to operating leases for the years ended December 31, 2022 and 2021 is as follows (in thousands):

Year Ended December 31,
202220212020
Operating cash outflows for operating leases$7,073 $7,732 $3,407 
Operating cash outflows for finance leases— — 150 
Financing cash outflows for finance leases— — 3,822 
Amortization of operating lease ROU assets1,495 1,361 1,554 
Interest expense on operating lease liabilities5,406 5,268 1,853 

A summary of our future minimum lease commitments under non-cancellable leases as of December 31, 2022 is as follows (in thousands):

Operating Leases
2023$9,076 
202411,122 
202511,409 
202611,666 
202711,717 
Thereafter42,513 
Total lease payments97,503 
Less: imputed interest(31,597)
Total$65,906 
Leases
4. Leases

As of December 31, 2022, our lease portfolio consists entirely of operating leases, all 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.
Right-of-Use (“ROU”) Assets and Lease Liabilities

At the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Operating leases with a term greater than one year are recognized on the consolidated balance sheet as ROU assets, lease liabilities, and, if applicable, long-term lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected not to recognize on our consolidated balance sheets leases with a term of one year or less.

Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rates within most of our leases are generally not determinable; therefore, we estimate our incremental borrowing rate to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same terms as the lease. We consider various factors, including our level of collateralization, estimated credit rating, and the currency in which the lease is denominated. Operating lease ROU assets also include any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option..

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 years ended December 31, 2022, 2021 and 2020 (in thousands):

Year Ended December 31,
202220212020
Operating lease cost$6,950 $6,619 $6,649 
Finance lease costs:
Amortization of right-of-use assets— — 1,242 
Interest on lease liabilities— — 150 
Short-term lease cost583 149 565 
Variable lease cost3,817 2,713 281 
Total$11,350 $9,481 $8,887 
Supplemental Lease Information

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

As of December 31,
20222021
Right-of-use assets for operating leases$37,248$27,897
Operating lease liabilities, current$8,681$8,110
Operating lease liabilities, net of current portion57,22548,784
Total operating lease liabilities$65,906$56,894
Weighted average remaining lease term (in years)8.49.5
Weighted average discount rate9.4 %9.5 %

Supplemental cash flow and expense information related to operating leases for the years ended December 31, 2022 and 2021 is as follows (in thousands):

Year Ended December 31,
202220212020
Operating cash outflows for operating leases$7,073 $7,732 $3,407 
Operating cash outflows for finance leases— — 150 
Financing cash outflows for finance leases— — 3,822 
Amortization of operating lease ROU assets1,495 1,361 1,554 
Interest expense on operating lease liabilities5,406 5,268 1,853 

A summary of our future minimum lease commitments under non-cancellable leases as of December 31, 2022 is as follows (in thousands):

Operating Leases
2023$9,076 
202411,122 
202511,409 
202611,666 
202711,717 
Thereafter42,513 
Total lease payments97,503 
Less: imputed interest(31,597)
Total$65,906