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Leases
9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases

9. Leases

We have various non-cancelable lease agreements for certain of our offices with original lease periods expiring between 2022 and 2042. Our lease terms may include options to extend or terminate the lease when it is reasonably certain we will exercise that option. Certain of the arrangements have free rent periods or escalating rent payment provisions.

Lease Cost

The components of lease cost were as follows:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(in thousands)

 

Operating lease expense

$

25,230

 

 

$

17,795

 

 

$

77,686

 

 

$

49,883

 

Sublease income

 

(92

)

 

 

(682

)

 

 

(956

)

 

 

(2,010

)

Total net lease costs

$

25,138

 

 

$

17,113

 

 

$

76,730

 

 

$

47,873

 

Lease Term and Discount Rate

The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows:

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

 

 

2021

 

Weighted-average remaining lease term

 

 

6.8

 

 

 

 

 

6.9

 

Weighted-average discount rate

 

 

4.9

%

 

 

 

 

5.2

%

 

We use our incremental borrowing rate based on the information available at the lease commencement date to determine the present value of lease payments.

Maturity of Lease Liabilities

The present value of our operating lease liabilities as of September 30, 2022 were as follows:

 

 

 

Operating Leases

 

 

 

(in thousands)

 

Remainder of 2022

 

$

22,741

 

2023

 

 

78,620

 

2024

 

 

100,758

 

2025

 

 

96,844

 

2026

 

 

47,957

 

Thereafter

 

 

181,331

 

Total lease payments

 

$

528,251

 

Less: Imputed interest

 

 

(85,843

)

Present value of lease liabilities

 

$

442,408

 

As of September 30, 2022, we have additional operating leases for facilities that have not yet commenced with lease obligations of $40.2 million. These operating leases will commence between 2022 and 2023 with lease terms of 5 years to 11 years.

Other Information

Cash payments included in the measurement of our operating lease liabilities were $20.6 million and $66.8 million for the three and nine months ended September 30, 2022, respectively, and $19.1 million and $54.1 million for the three and nine months ended September 30, 2021, respectively.

Lease liabilities arising from obtaining operating lease right-of-use assets were $134.8 million for the nine months ended September 30, 2022. There were no lease liabilities arising from obtaining operating lease right-of-use assets during the three months ended September 30, 2022. Lease liabilities arising from obtaining operating lease right-of-use assets were $8.4 million and $56.1 million for the three and nine months ended September 30, 2021, respectively.