The Company leases facilities, and equipment under noncancelable leases that have been classified as operating leases for financial reporting purposes. These leases often include one or more options to renew and the lease term includes the renewal terms when it is reasonably certain that the Company will exercise the option. In general, for the Company’s material leases, the renewal options are not included in the calculation of its right-of-use assets and lease liabilities, as the Company does not believe that it is reasonably certain that these renewal options will be exercised. The Company’s lease agreements do not contain any material residual guarantees or material restrictive covenants.

All operating lease expenses are recognized on a straight-line basis over the lease term as a component of “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive (Loss) Income. Payments under the Company’s lease arrangements are primarily fixed. However, certain lease agreements contain variable costs, which are expensed as incurred and not included in the calculation of the Company’s right-of-use assets and related liabilities for those leases. These costs typically include real estate taxes, common area maintenance and utilities for which the Company is obligated to pay under the terms of those leases.

During the years ended December 31, 2022, 2021, and 2020, the Company expensed approximately $30.7 million, $28.7 million, and $44.2 million, respectively, of total operating lease costs, which includes $4.4 million, $4.6 million, and $6.6 million, of variable lease costs, respectively.

Beginning in mid-March of 2020, in response to the COVID-19 pandemic, the Company established a global work from home policy. A significant portion of the Company’s office-based workforce temporarily transitioned to working from home and the Company commenced a plan to strategically exit certain offices during the year ended December 31, 2020. Based on a number of factors, the Company concluded that this strategic initiative did not result in a triggering event that would indicate that the Company’s related asset groups may not be recoverable as of December 31, 2020. In enacting the plan, the Company abandoned several office leases prior to reaching termination agreements with its landlords, and as a result, adjusted the useful life of these asset to reflect the remaining expected use. The reduction to the right-of use assets and liabilities related to these leases resulted in an additional lease gain of $0.3 million, $1.9 million, and $0.8 million for the years ended December 31, 2022, 2021, and 2020, respectively. Additionally, the Company paid $1.3 million, $6.8 million and $18.0 million in termination fees for the years ended December 31,

2022, 2021 and 2020, respectively, which were recorded in “Selling, general and administrative expenses” in the Consolidated Statements of Operations and Comprehensive (Loss) Income.

Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company’s right-of-use assets and lease liabilities for operating leases as of December 31, 2022 and 2021 were as follows:


		December 31,
(in thousands)	Classification	2022		2021
Assets
Operating lease right-of-use assets	Other assets	$	61,072	$	47,487
Liabilities
Current operating lease liabilities	Other accrued expenses		21,584		20,415
Noncurrent operating lease liabilities	Other long-term liabilities		56,371		40,444
Total lease liabilities		$	77,955	$	60,859

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. In determining its incremental borrowing rate, the Company reviewed the terms of its leases, its credit facilities, and other factors.

Information related to the Company’s right-of-use assets and related lease liabilities were as follows:


	Year Ended December 31,
(in thousands)	2022			2021			2020
Cash paid for operating lease liabilities	$	23,298		$	25,022			42,670
Right-of-use assets obtained in exchange for new operating lease obligations		31,007			19,869			7,496
Weighted-average remaining lease term		4.2			4.1			4.7
Weighted-average discount rate		8.6	%		7.7	%		9.8	%

Maturities of lease liabilities as of December 31, 2022 were as follows:


(in thousands)
2023	$	27,003
2024		22,623
2025		17,042
2026		12,651
2027		7,182
Thereafter		7,592
Total lease payments	$	94,093
Less imputed interest		(16,138	)
Present value of lease liabilities	$	77,955