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Note 9 - Leases

12 Months Ended

Dec. 31, 2022

9.	Leases

We have operating leases primarily associated with our corporate offices and regional service centers as well as for certain equipment. Our leases have remaining lease terms of 1 to 12 years, some of which include options, at our discretion, to extend the leases for additional periods generally on one-year revolving periods. Other leases allow for us to terminate the lease based on appropriate notification periods. For certain of our leased offices, we sublease a portion of the unoccupied space. The terms of the sublease arrangement generally coincide with the underlying lease. The components of lease expense associated with our lease liabilities and supplemental cash flow information related to those leases were as follows (dollar amounts in thousands):

	For the Year Ended December 31,
	2022			2021			2020
Operating lease cost, gross	$	4,431		$	6,905		$	6,879
Sublease income		(2,165	)		(5,234	)		(5,133	)
Net Operating lease cost	$	2,266		$	1,671		$	1,746
Cash paid under operating leases, gross	$	4,053		$	10,470		$	10,278

Weighted average remaining lease term - months		133
Weighted average discount rate		6.5	%

As of December 31, 2022, maturities of lease liabilities were as follows (in thousands):

	Gross Lease Payment			Payments received from Sublease			Net Lease Payment
2023	$	1,662		$	(39	)	$	1,623
2024		2,777			—			2,777
2025		2,629			—			2,629
2026		2,489			—			2,489
2027		2,466			—			2,466
Thereafter		17,338			—			17,338
Total lease payments		29,361			(39	)		29,322
Less imputed interest		(9,249	)
Total	$	20,112

In August 2021, we entered into an operating lease agreement for our corporate headquarters in Atlanta, Georgia with an unaffiliated third party. The new lease covers approximately 73,000 square feet and commenced in June 2022 for a 146 month term. The total commitment under the new lease is approximately $27.8 million and is included in the table above. In connection with the commencement of this new lease, we discontinued most of the subleasing arrangements with third parties for space at our corporate headquarters. A right-of-use asset and liability was recorded at the commencement date of the lease.

In addition, we occasionally lease certain equipment under cancelable and non-cancelable leases, which are accounted for as capital leases in our consolidated financial statements. As of December 31, 2022, we had no material non-cancelable capital leases with initial or remaining terms of more than one year.