Leases

3 Months Ended

Mar. 31, 2022

7. LEASES

We lease most of our administrative and educational facilities under non-cancelable operating leases expiring at various dates through 2032. Lease terms generally range from five to ten years with one to four renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period, which are typically variable in nature.

We determine if a contract contains a lease when the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Upon identification and commencement of a lease, we establish a right of use (“ROU”) asset and a lease liability.

Quantitative information related to leases is presented in the following table (dollars in thousands):

	For the Quarter Ended March 31, 2022			For the Quarter Ended March 31, 2021
Lease expenses ⁽¹⁾
Fixed lease expenses - operating	$	2,767		$	3,015
Variable lease expenses - operating		815			1,513
Sublease income		(276	)		(499	)
Total lease expenses	$	3,306		$	4,029

Other information
Gross operating cash flows for operating leases ⁽²⁾	$	(4,555	)	$	(5,221	)
Operating cash flows from subleases⁽²⁾	$	274		$	530

	As of March 31, 2022			As of March 31, 2021
Weighted average remaining lease term (in months) – operating leases		68			73
Weighted average discount rate – operating leases		4.9	%		5.0	%

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(1)

Lease expense and sublease income represent the amount recorded within our unaudited condensed consolidated statements of income. Variable lease amounts represent expenses recognized as incurred which are not included in the lease liability. Fixed lease expenses and sublease income are recorded on a straight-line basis over the lease term and therefore are not necessarily representative of cash payments during the same period.

(2)

Cash flows are presented on a consolidated basis and represent cash payments for fixed and variable lease costs.

Subleases

Historically, for certain of our leased locations we have vacated the facility and have fully or partially subleased the space. As of March 31, 2022, we have one sublease with a remaining term of 13 months, for which we remain the guarantor under the lease and therefore become the intermediate lessor. We have recognized sublease income of $0.3 million and $0.5 million for the quarters ended March 31, 2022 and 2021, respectively, as an offset to lease expense on our unaudited condensed consolidated statements of income.