We have operating leases for: (i) real estate which includes office space and our design and delivery centers; and (ii) our outsourced data center environment, as discussed further in Note 11. Our leases have remaining terms through 2033, some of which include options to extend the leases for up to an additional ten years. The exercise of lease renewal options is at our sole discretion. Additionally, certain of our leases include payments that are adjusted periodically for inflation.

We have made an accounting policy election not to recognize on our Balance Sheets leases with an initial term of twelve months or less, for any class of underlying asset. We have also made an election for real estate leases not to separate the lease and non-lease components, but rather account for the entire arrangement as a single lease component. For our outsourced data center environment agreement, we have concluded that there are lease and non-lease components and have allocated the consideration in the agreement on a relative stand-alone price basis. Due to the significant assumptions and judgments required in accounting for leases (to include whether a contract contains a lease, the allocation of the consideration, and the determination of the discount rate), the judgments and estimates made could have a significant effect on the amount of assets and liabilities recognized.

We sublease certain of our leased real estate to third parties. These subleases have remaining lease terms through 2031.

The components of lease expense for 2024, 2023, and 2022 were as follows (in thousands):


	2024			2023			2022
Operating lease expense	$	13,222		$	16,073		$	21,516
Variable lease expense		2,847			3,299			4,103
Short-term lease expense		944			1,115			1,105
Sublease income		(1,746	)		(2,691	)		(2,246	)
Total net lease expense	$	15,267		$	17,796		$	24,478

The decrease in lease expense is due to our flexible work approach that began in 2022 and resulted in the consolidation and closure of office space at numerous of our leased real estate locations (see Note 8).

Other information related to leases for 2024, 2023, and 2022 was as follows (in thousands, except term and discount rate):


	2024			2023			2022
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	15,285		$	20,559		$	21,125
Right-of-use assets obtained in exchange for new operating lease liabilities		2,348			2,787			3,817
Weighted-average remaining lease term - operating leases	65 months			58 months			54 months
Weighted-average discount rate - operating leases		4.08	%		3.95	%		3.84	%

Future minimum lease payments under non-cancelable leases as of December 31, 2024 were as follows (in thousands):


2025	$	12,274
2026		5,570
2027		5,119
2028		4,933
2029		4,278
Thereafter		8,492
Total future minimum lease payments (1)		40,666
Less: Interest (2)		(4,579	)
Total	$	36,087

Current operating lease liabilities	$	11,067
Non-current operating lease liabilities		25,020
Total	$	36,087

(1)

For leases commencing prior to 2019, minimum lease payments exclude payments for real estate taxes and non-lease components.

(2)

We use our functional currency adjusted incremental borrowing rate for the discount rate.

During 2023, we entered into a new agreement with our outsourced data center environment provider that is effective in 2025 (see Note 11). As a result, upon commencement we will evaluate the lease and non-lease components and allocate the consideration between them.