The Company leases office space and equipment under various operating lease arrangements. The Company’s leases have remaining lease terms ranging from 8 months to 7 years. Some building leases have options to extend, terminate, or retract the leased area. During the year ended December 31, 2021, the Company exercised the contraction clause of one of its leases. The Company incurred a $0.3 million contraction fee in conjunction with exercising the contraction clause. The related lease ROU asset and lease liability were revalued when the Company exercised the contraction clause.

In conjunction with the sale of the renewal rights related to the Company's Farm, Ranch & Stable business, lease ROU assets related to building space, parking, and equipment at the Company’s Omaha Nebraska location were evaluated for impairment. An impairment loss of $0.5 million was recognized and included in acquisition costs and other underwriting expenses on the Company’s consolidated statements of operations for the year ended December 31, 2022. The lease ROU assets and lease liabilities related to the Omaha Nebraska building and parking lease were also re-measured due to the Company’s intention to exercise the early termination clause which allows the Company to reduce the length of the lease term from 125 months to 65 months.

In conjunction with the sale of the renewal rights related to the Company's manufactured and dwelling homes business, lease ROU assets related to building space, parking, and equipment at the Company’s Scottsdale Arizona location were evaluated for impairment. An impairment loss of $0.7 million was recognized in acquisition costs and other underwriting expenses on the Company’s consolidated statements of operations for the year ended December 31, 2022. An impairment loss of $1.5 million was recognized and included in corporate and other operating expenses on the Company’s consolidated statements of operations for the year ended December 31, 2021. The lease ROU assets and lease liabilities related to the Scottsdale Arizona building and parking lease were also re-measured due to the Company’s intention to exercise the early termination clause which allows the Company to reduce the length of the lease term from 131 months to 95 months.

As part of this sale, K2 is subleasing approximately one third of the Company’s Scottsdale, Arizona office. If the Company exercises the early termination clause, it will receive $1.6 million in sublease payments from K2. If it does not exercise the early termination clause, it will receive $2.4 million in sublease payments from K2 between October 2021 and November 2029. Rental income derived from this sublease will be recognized on a straight-line basis over the operating lease term.

Since employees in Ireland work remotely, the company decided to terminate its lease in Cavan Ireland. As a result, an impairment loss of $0.2 million was recognized and included in acquisition costs and other underwriting expenses on the Company’s consolidated statements of operations for the year ended December 31, 2022.

The impairments losses recognized on leases were as follows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Scottsdale Arizona	$	681	$	1,515	$	—
Omaha Nebraska		488		—		—
Cavan Ireland		168		—		—
Total lease impairment	$	1,337	$	1,515	$	—

The components of lease expenses were as follows:


	Years Ended December 31,
(Dollars in thousands)	2022			2021			2020
Operating lease expenses	$	2,372		$	2,789		$	2,952
Short-term lease expenses		15			8			7
Sublease income		(331	)		(55	)		—
Total lease expenses	$	2,056		$	2,742		$	2,959

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Cash paid for amounts included in the measurement of liabilities:
Operating leases	$	2,056	$	2,797	$	2,012
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	—	$	783	$	772

Supplemental balance sheet information related to leases was as follows:

The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets.


		December 31,
(Dollars in thousands)	Classification on the consolidated balance sheets	2022			2021
Assets:
Operating lease assets	Lease right of use assets	$	11,739		$	16,051

Liabilities:
Operating lease liabilities	Lease liabilities	$	15,701		$	19,079

Weighted-average remaining lease term
Operating leases		6.6 years			7.7 years

Weighted-average discount rate
Operating leases (1)			0.9	%		0.9	%

(1) Represents the Company’s incremental borrowing rate at the time the leases were contracted.

At December 31, 2022, future minimum lease payments under non-cancelable operating leases were as follows.


(Dollars in thousands)	Operating Leases (1)		Expected Sublease Income
2023	$	2,995	$	291
2024		2,799		297
2025		2,831		388
2026		2,650		342
2027		1,590		—
Thereafter		3,241		—
Total future minimum lease payments		16,106		1,318
Less: amount representing interest		405		—
Present value of minimum lease payments	$	15,701	$	1,318

(1)

Includes future minimum lease payments of $4.6 million on leases that have been impaired because the property is no longer in use.