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Leases | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | Leases The Company enters into various office space, data center, and equipment lease agreements in conducting its normal business operations. At the inception of any contract, the Company evaluates the agreement to determine whether the contract contains a lease. If the contract contains a lease, the Company then evaluates the term and whether the lease is an operating or finance lease. Most leases include one or more options to renew or may have a termination option. The Company determines whether these options are reasonably certain to be exercised or not at the inception of the lease. In addition, some leases contain escalation clauses. The rent expense is recognized on a straight-line basis in the consolidated statements of operations and comprehensive income (loss) over the term of the lease. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Further, the Company treats all lease and non-lease components as a single combined lease component for all classes of underlying assets. The Company also enters into sublease agreements for some of its leased office space. Immaterial rental income attributable to subleases is offset against rent expense over the terms of the respective leases. The Company leases office space and computer and other equipment under operating lease agreements expiring at various dates through 2032. Under the lease agreements, in addition to base rent, the Company is generally responsible for operating and maintenance costs and related fees. Several of these agreements include tenant improvement allowances, rent holidays or rent escalation clauses. When such items are included in a lease agreement, we record a deferred rent asset or liability on our consolidated balance sheets equal to the difference between rent expense and future minimum lease payments due. The rent expense related to these items is recognized on a straight-line basis over the terms of the leases. The Company’s primary office location is in Arlington, Virginia, which has served as its corporate headquarters since 2013. The Arlington, Virginia office lease expires in January 2032. Certain leases acquired as part of the Valence Health transaction included existing sublease agreements for office locations in Chicago, Illinois. In connection with various lease agreements, the Company is required to maintain $2.3 million and $3.8 million in letters of credit as of September 30, 2022 and December 31, 2021. As of September 30, 2022 and December 31, 2021, the Company held $2.3 million and $3.8 million in restricted cash and restricted investments on the consolidated balance sheet as collateral for the letters of credit, respectively. The following table summarizes our primary office leases as of September 30, 2022 (in thousands, other than term):
Location |  | Lease Termination Term (in years) |  | Future Minimum Lease Commitments |  | Letter of Credit Amount Required
Arlington, VA |  | 9.3 |  | $ | 33,212 |  |  | $ | 1,579 |
Riverside, IL |  | 8.5 |  | 38,940 |  |  | 232 |
Edison, NJ |  | 3.6 |  | 1,839 |  |  | 222 |
Alpharetta, GA |  | 3.0 |  | 1,409 |  |  | — |
Pune, India |  | 1.0 |  | 621 |  |  | — |
Brea, CA |  | 4.7 |  | 4,304 |  |  | — |
The following table summarizes the components of our lease expense (in thousands):
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease cost | $ | 2,221 |  |  | $ | 2,417 |  |  | $ | 6,726 |  |  | $ | 9,672 |
Variable lease cost | 1,599 |  |  | 1,183 |  |  | 4,096 |  |  | 3,696 |
Total lease cost | $ | 3,820 |  |  | $ | 3,600 |  |  | $ | 10,822 |  |  | $ | 13,368 |
Maturity of lease liabilities (in thousands) as of September 30, 2022, is as follows:
| Operating lease expense
2022 | $ | 2,756 |
2023 | 10,865 |
2024 | 10,595 |
2025 | 10,012 |
2026 | 8,987 |
Thereafter | 40,377 |
Total lease payments | 83,592 |
Less: |
Interest | 18,699 |
Present value of lease liabilities | $ | 64,893 |
Our weighted-average discount rate and our weighted remaining lease terms (in years) are as follows:
| September 30, 2022
Weighted average discount rate | 6.34 | %
Weighted average remaining lease term | 8.0

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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