Leases

6 Months Ended

Jun. 30, 2023

Our right-of-use assets and lease liabilities primarily include operating leases for office space. Our executive offices and those related to certain domestic product development, marketing, production and administration are located in a 186,000 square foot office facility in Canonsburg, Pennsylvania. The term of the lease is 183 months, which began on October 1, 2014 and expires on December 31, 2029. The lease agreement includes options to renew the contract through August 2044, an option to lease additional space in January 2025 and an option to terminate the lease in December 2025. No options are included in the lease liability. Absent the exercise of options in the lease, our remaining base rent (inclusive of property taxes and certain operating costs) is $4.5 million per annum through 2024 and $4.7 million per annum for 2025 - 2029.

The components of our global lease cost reflected in the condensed consolidated statements of income are as follows:


	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Lease liability cost	$	7,069	$	6,955	$	14,110	$	13,926
Variable lease cost not included in the lease liability(1)	1,428		1,103		2,611		2,187
Total lease cost	$	8,497	$	8,058	$	16,721	$	16,113

(1) Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate.

Other information related to operating leases is as follows:


	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Cash paid for amounts included in the measurement of the lease liability:
Operating cash flows from operating leases	$	(6,926)	$	(6,571)	$	(13,705)	$	(13,589)
Right-of-use assets obtained in exchange for new operating lease liabilities	$	902	$	4,357	$	5,316	$	20,675


	As of June 30,
	2023		2022
Weighted-average remaining lease term of operating leases	6.6 years		7.3 years
Weighted-average discount rate of operating leases	3.2	%	3.0	%

The maturity schedule of the operating lease liabilities as of June 30, 2023 is as follows:


(in thousands)
Remainder of 2023	$	14,092
2024	25,446
2025	21,918
2026	19,443
2027	18,129
Thereafter	43,637
Total future lease payments	142,665
Less: Present value adjustment	(14,140)
Present value of future lease payments(1)	$	128,525

(1) Includes the current portion of operating lease liabilities of $23.3 million, which is reflected in other accrued expenses and liabilities in the condensed consolidated balance sheets.

There were no material leases that have been signed but not yet commenced as of June 30, 2023.