v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under Topic 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset.
The Company leases office facilities from unrelated parties under operating lease agreements that have initial terms ranging from 2 to 10 years. Included in an office lease the Company also leases furniture and fixtures under a finance lease with a seven year term with a purchase option at the end of the term.
The allocation of lease payments was determined based on the relative standalone price of the separate office and furniture components. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 5 additional years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are not included in the lease terms as the Company is not reasonably certain that they will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.
Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the right-of-use assets and interest expense for the outstanding lease liabilities, and results in a front-loaded expense pattern over the lease term. Short-term and variable lease costs are not material to the Company’s consolidated financial statements.
The components of lease cost were as follows (in thousands):
Year Ended December 31,
2022
2021
Operating lease cost$6,876 $2,104 
Finance lease cost - amortization of right-of-use assets174 14 
Finance lease cost - interest on lease liabilities18 2 
Total lease cost$7,068 $2,120 
Supplemental cash flow information related to leases was as follows (in thousands):
Year Ended December 31,
2022
2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows - payments on operating leases$5,015 $2,283 
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases$10,424 $20,887 
Finance leases$— $869 
Supplemental balance sheet information related to leases was as follows (in thousands):
December 31,
2022
2021
Operating leases
Operating lease right-of-use assets$26,206 $21,613 
Operating lease liabilities, current$5,676 $3,864 
Operating lease liabilities, non-current20,915 17,842 
Total operating lease liabilities$26,591 $21,706 
Finance leases
Furniture and fixtures$869 $869 
Accumulated depreciation(188)(14)
Furniture and fixtures, net$681 $855 
Accrued liabilities$125 $119 
Other liabilities, non-current616 741 
Total finance lease liabilities$741 $860 
Other information related to leases was as follows:
December 31,
2022
2021
Weighted-average remaining lease term:
Operating leases
4.6 years
6.0 years
Finance leases
5.3 years
6.3 years
Weighted-average discount rate:
Operating leases3.22 %2.20 %
Finance leases2.24 %2.24 %
As of December 31, 2022, the maturities of lease liabilities under operating and finance leases were as follows (in thousands):
Operating LeasesFinance LeasesTotal
Year ending December 31,
2023$6,440 $140 $6,580 
20246,499 145 6,644 
20255,129 149 5,278 
20265,347 153 5,500 
20274,256 158 4,414 
Thereafter980 41 1,021 
Total minimum lease payments28,651 786 29,437 
Less: imputed interest(2,060)(45)(2,105)
Total present value of lease liabilities$26,591 $741 $27,332 
Leases Leases
The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under Topic 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset.
The Company leases office facilities from unrelated parties under operating lease agreements that have initial terms ranging from 2 to 10 years. Included in an office lease the Company also leases furniture and fixtures under a finance lease with a seven year term with a purchase option at the end of the term.
The allocation of lease payments was determined based on the relative standalone price of the separate office and furniture components. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 5 additional years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are not included in the lease terms as the Company is not reasonably certain that they will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.
Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the right-of-use assets and interest expense for the outstanding lease liabilities, and results in a front-loaded expense pattern over the lease term. Short-term and variable lease costs are not material to the Company’s consolidated financial statements.
The components of lease cost were as follows (in thousands):
Year Ended December 31,
2022
2021
Operating lease cost$6,876 $2,104 
Finance lease cost - amortization of right-of-use assets174 14 
Finance lease cost - interest on lease liabilities18 2 
Total lease cost$7,068 $2,120 
Supplemental cash flow information related to leases was as follows (in thousands):
Year Ended December 31,
2022
2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows - payments on operating leases$5,015 $2,283 
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases$10,424 $20,887 
Finance leases$— $869 
Supplemental balance sheet information related to leases was as follows (in thousands):
December 31,
2022
2021
Operating leases
Operating lease right-of-use assets$26,206 $21,613 
Operating lease liabilities, current$5,676 $3,864 
Operating lease liabilities, non-current20,915 17,842 
Total operating lease liabilities$26,591 $21,706 
Finance leases
Furniture and fixtures$869 $869 
Accumulated depreciation(188)(14)
Furniture and fixtures, net$681 $855 
Accrued liabilities$125 $119 
Other liabilities, non-current616 741 
Total finance lease liabilities$741 $860 
Other information related to leases was as follows:
December 31,
2022
2021
Weighted-average remaining lease term:
Operating leases
4.6 years
6.0 years
Finance leases
5.3 years
6.3 years
Weighted-average discount rate:
Operating leases3.22 %2.20 %
Finance leases2.24 %2.24 %
As of December 31, 2022, the maturities of lease liabilities under operating and finance leases were as follows (in thousands):
Operating LeasesFinance LeasesTotal
Year ending December 31,
2023$6,440 $140 $6,580 
20246,499 145 6,644 
20255,129 149 5,278 
20265,347 153 5,500 
20274,256 158 4,414 
Thereafter980 41 1,021 
Total minimum lease payments28,651 786 29,437 
Less: imputed interest(2,060)(45)(2,105)
Total present value of lease liabilities$26,591 $741 $27,332