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Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in thousands):
|  |  |  | December 31,
Category |  | Classification |  | 2022 |  | 2021
Assets |  |  |  |  |  |
Operating |  | Operating lease assets |  | $ | 1,033,011 |  |  | $ | 1,046,377 |
Financing |  | Other assets, net |  | 91,028 |  |  | 110,809 |
Total leased assets |  |  |  | $ | 1,124,039 |  |  | $ | 1,157,186 |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating |  | Operating lease liabilities |  | $ | 229,591 |  |  | $ | 232,423 |
Financing |  | Other current liabilities |  | 33,039 |  |  | 38,103 |
Non-current: |  |  |  |  |  |
Operating |  | Non-current operating lease liabilities |  | 1,080,385 |  |  | 1,116,562 |
Financing |  | Other liabilities |  | 58,094 |  |  | 73,257 |
Total lease liabilities |  |  |  | $ | 1,401,109 |  |  | $ | 1,460,345 |
Components of lease cost are as follows (dollars in thousands):
|  |  |  | Year Ended December 31,
Component |  | Classification |  | 2022 |  | 2021
Operating lease cost |  | Operating, administrative and other |  | $ | 196,218 |  |  | $ | 196,685 |
Financing lease cost: |  |  |  |  |  |
Amortization of right-to-use assets |  | (1) |  | 30,601 |  |  | 36,376 |
Interest on lease liabilities |  | Interest expense |  | 934 |  |  | 1,301 |
Variable lease cost |  | (2) |  | 79,249 |  |  | 70,091 |
Sublease income |  | Revenue |  | (4,092) |  |  | (2,271) |
Total lease cost |  |  |  | $ | 302,910 |  |  | $ | 302,182 |
_______________ (1)Amortization costs of $26.4 million and $31.9 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. Amortization costs of $4.2 million and $4.4 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. (2)Variable lease costs of $23.6 million and $16.8 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. Variable lease costs of $55.6 million and $53.3 million from all other leases are included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows:
| December 31,
| 2022 |  | 2021
Weighted-average remaining lease term: |  |  |
Operating leases (1) | 42 years |  | 8 years
Financing leases (2) | 75 years |  | 72 years
Weighted-average discount rate: |  |  |
Operating leases (1) | 4.5% |  | 2.9%
Financing leases (2) | 5.1% |  | 5.0%
_______________ (1)In 2022, we entered into two 99-year operating leases and one 90-year operating lease on real estate under development. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 7 years and 3.0%, respectively, as of December 31, 2022. (2)Finance leases as of December 31, 2022 and 2021 included a 99 year lease on a real estate under development. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 1.7%, respectively, as of December 31, 2022 and 3 years and 1.8%, respectively, as of December 31, 2021. Maturities of lease liabilities by fiscal year as of December 31, 2022 are as follows (dollars in thousands):
| Operating Leases |  | Financing Leases
2023 | $ | 229,748 |  |  | $ | 33,213 |
2024 | 226,036 |  |  | 23,556 |
2025 | 210,518 |  |  | 12,921 |
2026 | 179,126 |  |  | 6,659 |
2027 | 130,284 |  |  | 2,227 |
Thereafter | 1,204,601 |  |  | 220,804 |
Total remaining lease payments at December 31, 2022 | 2,180,313 |  |  | 299,380 |
Less: Interest | 870,337 |  |  | 208,247 |
Present value of lease liabilities at December 31, 2022 | $ | 1,309,976 |  |  | $ | 91,133 |
Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in thousands):
| Year Ended December 31,
| 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 236,758 |  |  | $ | 202,690 |
Operating cash flows from financing leases | 2,432 |  |  | 2,876 |
Financing cash flows from financing leases | 37,987 |  |  | 41,211 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 164,275 |  |  | 199,275 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 31,272 |  |  | 39,460 |
Other non-cash increases in operating lease right-of-use assets (1) | 31,856 |  |  | 12,126 |
Other non-cash increases (decreases) in financing lease right-of-use assets (1) | 5,779 |  |  | (2,754) |
_______________ (1)The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements.
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in thousands):
|  |  |  | December 31,
Category |  | Classification |  | 2022 |  | 2021
Assets |  |  |  |  |  |
Operating |  | Operating lease assets |  | $ | 1,033,011 |  |  | $ | 1,046,377 |
Financing |  | Other assets, net |  | 91,028 |  |  | 110,809 |
Total leased assets |  |  |  | $ | 1,124,039 |  |  | $ | 1,157,186 |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating |  | Operating lease liabilities |  | $ | 229,591 |  |  | $ | 232,423 |
Financing |  | Other current liabilities |  | 33,039 |  |  | 38,103 |
Non-current: |  |  |  |  |  |
Operating |  | Non-current operating lease liabilities |  | 1,080,385 |  |  | 1,116,562 |
Financing |  | Other liabilities |  | 58,094 |  |  | 73,257 |
Total lease liabilities |  |  |  | $ | 1,401,109 |  |  | $ | 1,460,345 |
Components of lease cost are as follows (dollars in thousands):
|  |  |  | Year Ended December 31,
Component |  | Classification |  | 2022 |  | 2021
Operating lease cost |  | Operating, administrative and other |  | $ | 196,218 |  |  | $ | 196,685 |
Financing lease cost: |  |  |  |  |  |
Amortization of right-to-use assets |  | (1) |  | 30,601 |  |  | 36,376 |
Interest on lease liabilities |  | Interest expense |  | 934 |  |  | 1,301 |
Variable lease cost |  | (2) |  | 79,249 |  |  | 70,091 |
Sublease income |  | Revenue |  | (4,092) |  |  | (2,271) |
Total lease cost |  |  |  | $ | 302,910 |  |  | $ | 302,182 |
_______________ (1)Amortization costs of $26.4 million and $31.9 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. Amortization costs of $4.2 million and $4.4 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. (2)Variable lease costs of $23.6 million and $16.8 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. Variable lease costs of $55.6 million and $53.3 million from all other leases are included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows:
| December 31,
| 2022 |  | 2021
Weighted-average remaining lease term: |  |  |
Operating leases (1) | 42 years |  | 8 years
Financing leases (2) | 75 years |  | 72 years
Weighted-average discount rate: |  |  |
Operating leases (1) | 4.5% |  | 2.9%
Financing leases (2) | 5.1% |  | 5.0%
_______________ (1)In 2022, we entered into two 99-year operating leases and one 90-year operating lease on real estate under development. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 7 years and 3.0%, respectively, as of December 31, 2022. (2)Finance leases as of December 31, 2022 and 2021 included a 99 year lease on a real estate under development. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 1.7%, respectively, as of December 31, 2022 and 3 years and 1.8%, respectively, as of December 31, 2021. Maturities of lease liabilities by fiscal year as of December 31, 2022 are as follows (dollars in thousands):
| Operating Leases |  | Financing Leases
2023 | $ | 229,748 |  |  | $ | 33,213 |
2024 | 226,036 |  |  | 23,556 |
2025 | 210,518 |  |  | 12,921 |
2026 | 179,126 |  |  | 6,659 |
2027 | 130,284 |  |  | 2,227 |
Thereafter | 1,204,601 |  |  | 220,804 |
Total remaining lease payments at December 31, 2022 | 2,180,313 |  |  | 299,380 |
Less: Interest | 870,337 |  |  | 208,247 |
Present value of lease liabilities at December 31, 2022 | $ | 1,309,976 |  |  | $ | 91,133 |
Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in thousands):
| Year Ended December 31,
| 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 236,758 |  |  | $ | 202,690 |
Operating cash flows from financing leases | 2,432 |  |  | 2,876 |
Financing cash flows from financing leases | 37,987 |  |  | 41,211 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 164,275 |  |  | 199,275 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 31,272 |  |  | 39,460 |
Other non-cash increases in operating lease right-of-use assets (1) | 31,856 |  |  | 12,126 |
Other non-cash increases (decreases) in financing lease right-of-use assets (1) | 5,779 |  |  | (2,754) |
_______________ (1)The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements.

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