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Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases

9. Leases

The Company’s lease portfolio primarily consists of finance and operating real estate leases integral for facility operations. The original terms of the leases typically range from five to 30 years with optional renewal periods. A minimal portion of the Company’s lease portfolio consists of non-real estate leases, including copiers and equipment, which generally have lease terms of one to three years and have insignificant lease obligations.

The Company also elected the accounting policy practical expedients by class of underlying asset in ASC 842 “Leases” to: (i) combine associated lease and non-lease components into a single lease component; and (ii) exclude recording short-term leases as right-of-use assets and liabilities on the consolidated balance sheets. Non-lease components, which are not significant overall, are combined with lease components.

Operating lease liabilities are recorded at the present value of remaining lease payments not yet paid for the lease term discounted using the incremental borrowing rate associated with each lease. Operating lease right-of-use assets represent operating lease liabilities adjusted for prepayments, accrued lease payments, lease incentives and initial direct costs. Certain of the Company’s leases include renewal or termination options. Calculation of operating lease right-of-use assets and liabilities include the initial lease term unless it is reasonably certain a renewal or termination option will be exercised. Variable components of lease payments fluctuating with a future index or rate, as well as those related to common area maintenance costs, are not included in determining lease payments and are expensed as incurred. Most of the Company’s leases do not contain implicit borrowing rates, and therefore, incremental borrowing rates were calculated based on information available at the lease commencement date. The Company reviews service agreements for embedded leases and records right-of-use assets and liabilities as necessary.

Lease Position

The Company recorded the following at December 31, 2021 and 2020 on the consolidated balance sheets (in thousands):

Right-of-Use Assets

 

Balance Sheet Classification

 

December 31, 2021

 

 

December 31, 2020

 

Finance lease right-of-use assets

 

Property and equipment, net

 

$

8,627

 

 

$

34,621

 

Operating lease right-of-use assets

 

Operating lease right-of-use assets

 

 

133,761

 

 

 

96,937

 

Total

 

 

 

$

142,388

 

 

$

131,558

 

 

 

 

 

 

 

 

 

 

 

 

Lease Liabilities

 

Balance Sheet Classification

 

December 31, 2021

 

 

December 31, 2020

 

Current:

 

 

 

 

 

 

 

 

 

 

Finance lease liabilities

 

Other accrued liabilities

 

$

990

 

 

$

32,188

 

Operating lease liabilities

 

Current portion of operating lease liabilities

 

 

23,348

 

 

 

18,916

 

Noncurrent:

 

 

 

 

 

 

 

 

 

 

Finance lease liabilities

 

Other liabilities

 

 

10,807

 

 

 

10,744

 

Operating lease liabilities

 

Operating lease liabilities

 

 

116,841

 

 

 

84,029

 

Total

 

 

 

$

151,986

 

 

$

145,877

 

 

Weighted-average remaining lease terms and discount rates were as follows at December 31, 2021 and 2020:

 

 

December 31,

 

 

 

2021

 

 

2020

 

Weighted-average remaining lease term (in years):

 

 

 

 

 

 

 

 

Finance

 

22.9

 

 

6.7

 

Operating

 

9.1

 

 

8.5

 

 

 

 

 

 

 

 

 

 

Weighted-average discount rate:

 

 

 

 

 

 

 

 

Finance

 

 

5.1

%

 

 

5.9

%

Operating

 

 

5.1

%

 

 

6.5

%

Lease Costs

The Company recorded the following lease costs at December 31, 2021 and 2020 (in thousands):

 

 

December 31,

 

 

 

2021

 

 

2020

 

Finance lease costs:

 

 

 

 

 

 

 

 

Depreciation of leased assets

 

 

378

 

 

 

868

 

Interest of lease liabilities

 

 

2,174

 

 

 

3,214

 

Total finance lease costs

 

$

2,552

 

 

$

4,082

 

 

 

 

 

 

 

 

 

 

Operating lease costs

 

 

28,233

 

 

 

27,050

 

Variable lease costs

 

 

2,488

 

 

 

2,501

 

Short term lease costs

 

 

3,257

 

 

 

3,558

 

Other lease costs

 

 

4,541

 

 

 

4,253

 

Total rents and leases

 

$

38,519

 

 

$

37,362

 

 

 

 

 

 

 

 

 

 

Total lease costs

 

$

41,071

 

 

$

41,444

 

Other

Undiscounted cash flows for finance and operating leases recorded on the consolidated balance sheet were as follows at December 31, 2021 (in thousands):

 

 

Finance Leases

 

 

Operating Leases

 

2021

 

$

990

 

 

$

29,973

 

2022

 

 

990

 

 

 

26,471

 

2023

 

 

1,007

 

 

 

23,110

 

2024

 

 

1,089

 

 

 

19,730

 

2025

 

 

1,089

 

 

 

14,500

 

Thereafter

 

 

22,911

 

 

 

68,427

 

Total minimum lease payments

 

 

28,076

 

 

 

182,211

 

Less: amount of lease payments representing interest

 

 

16,279

 

 

 

42,022

 

Present value of future minimum lease payments

 

 

11,797

 

 

 

140,189

 

Less: Current portion of lease liabilities

 

 

990

 

 

 

23,348

 

Noncurrent lease liabilities

 

$

10,807

 

 

$

116,841

 

 

Supplemental data for the years ended December 31, 2021 and 2020 were as follows (in thousands):

 

 

December 31,

 

 

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

27,508

 

 

$

26,810

 

Operating cash flows for finance leases

 

$

2,174

 

 

$

3,214

 

Financing cash flows for finance leases

 

$

31,136

 

 

$

551

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

63,279

 

 

$

21,285

 

Finance leases

 

$

 

 

$