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

 


 

6.

LEASES

The Company has primarily entered into lease arrangements for office space, in addition to other miscellaneous equipment. The Company’s leases have initial non-cancelable lease terms ranging from one to 10 years. Some of the Company’s lease arrangements include options to extend the term of the leases for up to 10 years. However, the lessor does not have the option to cancel any of the Company’s leases prior to the end of the remaining contractual term. Judgment is required when determining the minimum non-cancelable term of the lease. The Company includes options to extend or terminate the lease term that are reasonably certain of exercise. If facts and circumstances regarding those judgments change in future periods, the Company reassesses its initial estimate of the term. The Company’s corporate headquarters offices have initial lease terms expiring in 2027, and a 10 year renewal option that the Company is reasonably certain it will exercise. The Company determined that the present value of lease payments represents substantially all of the fair value of the underlying leased asset and therefore recognizes its corporate headquarters as a finance lease.

The components of lease expense were as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of right of use assets

 

$

2,705

 

 

$

2,683

 

 

$

2,676

 

Interest on lease liabilities

 

 

2,017

 

 

 

2,076

 

 

 

2,131

 

Operating lease cost

 

 

11,526

 

 

 

8,943

 

 

 

8,045

 

Short-term lease cost

 

 

674

 

 

 

47

 

 

 

1,643

 

Variable lease cost

 

 

5,667

 

 

 

4,370

 

 

 

4,410

 

Total lease cost

 

$

22,589

 

 

$

18,119

 

 

$

18,905

 

 

Supplemental information related to leases is as follows (in thousands):

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Operating Leases

 

 

 

 

 

 

 

 

Operating right of use assets

 

$

41,934

 

 

$

44,052

 

Amount included within other current

   liabilities

 

 

8,801

 

 

 

6,158

 

Operating lease liabilities, non-current

 

 

38,087

 

 

 

41,573

 

Total operating lease liabilities

 

$

46,888

 

 

$

47,731

 

Finance Leases

 

 

 

 

 

 

 

 

Finance right of use assets

 

$

37,026

 

 

$

39,623

 

Amount included within other current

   liabilities

 

 

1,854

 

 

 

1,684

 

Finance lease liabilities, non-current

 

 

45,578

 

 

 

47,344

 

Total finance lease liabilities

 

$

47,432

 

 

$

49,028

 

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Weighted-average remaining lease term (in years)

 

 

 

 

 

 

 

 

 

 

 

 

Finance leases

 

 

14.2

 

 

 

15.2

 

 

 

16.2

 

Operating leases

 

 

6.6

 

 

 

7.8

 

 

 

8.7

 

Weighted-average discount rate

 

 

 

 

 

 

 

 

 

 

 

 

Finance leases

 

 

4.20

%

 

 

4.20

%

 

 

4.20

%

Operating leases

 

 

2.89

%

 

 

2.76

%

 

 

2.86

%

 

 

Maturities of lease payments for leases where the lease commencement date commenced on or prior to December 31, 2022 are as follows (in thousands):

 

Years Ending December 31,

 

Operating

 

 

Finance

 

 

Total

 

2023

 

$

9,900

 

 

$

3,806

 

 

$

13,706

 

2024

 

 

8,138

 

 

 

3,886

 

 

 

12,024

 

2025

 

 

7,226

 

 

 

4,007

 

 

 

11,233

 

2026

 

 

6,808

 

 

 

4,120

 

 

 

10,928

 

2027

 

 

5,198

 

 

 

4,282

 

 

 

9,480

 

Thereafter

 

 

14,384

 

 

 

43,959

 

 

 

58,343

 

Total lease payments

 

$

51,654

 

 

$

64,060

 

 

$

115,714

 

Less imputed interest

 

 

(4,766

)

 

 

(16,628

)

 

 

(21,394

)

Total

 

$

46,888

 

 

$

47,432

 

 

$

94,320

 

 

As of December 31, 2022, operating lease payments for leases greater than one month, but less than 12 months in duration were not significant.

As of December 31, 2022, the Company had undiscounted commitments of $2.7 million for an operating lease that had not yet commenced, and therefore are not included in the right-of-use assets or operating liabilities in the consolidated balance sheet. This operating lease commenced in 2023 with a lease term of two years.