Leases

3 Months Ended

Mar. 31, 2023

4. Leases

As of March 31, 2023, 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, utilities, and service charges, are not included in right-of-use (“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 months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	2,146	$	1,634
Short-term lease cost	365		88
Variable lease cost	1,026		973
Total	$	3,537	$	2,695

Supplemental Lease Information

Supplemental balance sheet information related to operating leases as of March 31, 2023 and December 31, 2022 is presented in the following table (in thousands, except for lease term and discount rate):


	March 31, 2023			December 31, 2022
ROU assets for operating leases	$	35,425		$	37,248

Operating lease liabilities, current	$	8,980		$	8,681
Operating lease liabilities, net of current portion	56,073			57,225
Total operating lease liabilities	$	65,053		$	65,906

Weighted average remaining lease term (in years)	8.2			8.4

Weighted average discount rate	9.4		%	9.4		%

Supplemental cash flow and expense information related to operating leases for the three months ended March 31, 2023 and 2022 is shown below (in thousands):


	Three Months Ended March 31,
	2023		2022
Operating cash outflows for operating leases	$	1,132	$	2,085

Amortization of operating lease ROU assets	652		306
Interest expense on operating lease liabilities	1,495		1,321

A summary of our future minimum lease commitments under non-cancellable leases as of March 31, 2023 is shown below (in thousands):


	Operating Leases
2023 (excluding the three months ended March 31, 2023)	$	6,830
2024	10,927
2025	11,408
2026	11,664
2027	11,838

Thereafter	42,504
Total lease payments	95,171
Less: imputed interest	(30,118)
Total	$	65,053