Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

Lessee

The Company has operating leases primarily for office space, buildings, and equipment. Our leases have remaining lease terms of one month to eleven years, some of which may include options to extend leases for up to five years and some which may include options to terminate the leases within one year.

The Company's lease costs were as follows:

	Year Ended December 31,
(in thousands)	2021		2020
Operating lease cost	$	9,499	$	9,700
Short-term lease cost	325		280
Sublease income	(134)		—
Total lease cost	$	9,690	$	9,980

Leases recorded on the consolidated balance sheet consist of the following:

	December 31,
(in thousands)	2021		2020
Assets:
Operating lease right-of-use assets	$	34,183	$	17,688
Liabilities:
Current operating lease liabilities	$	11,998	$	10,603
Long-term operating lease liabilities	35,492		12,739
Total lease liabilities	$	47,490	$	23,342

On October 4, 2021, an office lease with an approximate 10-year term with an unrelated third party commenced. The Company accounted for this lease as an operating lease and established a lease liability and right-of-use asset of approximately $34.6 million and $25.3 million, respectively, during the fourth quarter of 2021.

Other information related to the Company's lease arrangements is as follows:

	Year Ended December 31,
(in thousands)	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,528		$	11,926
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating lease assets obtained in exchange for operating lease liabilities	$	25,852		$	2,364
Weighted-average remaining lease term	7.66 years			2.24 years
Weighted-average discount rate(1)	2.79		%	3.55		%

(1) Discount rates used for existing operating leases upon adoption of Topic 842 were established based on remaining lease term as of January 1, 2019.

Maturities of lease liabilities as of December 31, 2021 are as follows:

(in thousands)
2022	$	13,119
2023	7,435
2024	3,878
2025	3,855
2026	3,788
Thereafter	20,443
Total minimum lease payments	$	52,518
Less imputed interest	5,028
Present value of minimum lease payments	$	47,490

In the fourth quarter of 2021, the Company entered into one office lease agreement with an unrelated third-party that we expect to account for as an operating lease. This lease is not reflected in our consolidated balance sheets or in the table above as the lease has not commenced. The lease has an approximate 11-year term and expected to commence in the fourth quarter of 2023.

Related Party

The Company and family members of the Company's largest shareholder entered into an agreement that allows those family members to lease the Company aircraft from time to time for their personal use. The agreement provides for lease payments that contribute towards the fixed costs associated with the aircraft as well as reimbursement of the Company’s variable costs associated with operation of the aircraft, in compliance with, and to the extent authorized by, applicable regulatory requirements. The terms of the lease agreements are consistent with the terms of lease agreements that the Company has entered into with unrelated third parties for use of the aircraft. During the years ended December 31, 2021 and 2020, the Company received $0.2 million and $0.2 million, respectively, pursuant to this arrangement.

In December 2013, the Company's board of directors approved an arrangement between the Company and an entity controlled by the family members of the Company's largest shareholder to sublease approximately 2,200 square feet of office space

located in Chevy Chase, Maryland. The sublease had a month-to-month term, with a 90-day notice period and annual lease payments totaling approximately $0.1 million. The sublease was not renewed following April 2019. During the year ended December 31, 2019, the Company received approximately $49 thousand in rent payments associated with this lease. Subsequently, the entity affiliated with the Company's largest shareholder entered into a separate lease with a third-party lessor and the Company reimburses the entity for use of the space by the Company's Chairman. During the years ended December 31, 2020 and 2019, the Company reimbursed the entity approximately $66 thousand and $76 thousand, respectively.

Leases

Leases

Lessee

The Company has operating leases primarily for office space, buildings, and equipment. Our leases have remaining lease terms of one month to eleven years, some of which may include options to extend leases for up to five years and some which may include options to terminate the leases within one year.

The Company's lease costs were as follows:

	Year Ended December 31,
(in thousands)	2021		2020
Operating lease cost	$	9,499	$	9,700
Short-term lease cost	325		280
Sublease income	(134)		—
Total lease cost	$	9,690	$	9,980

Leases recorded on the consolidated balance sheet consist of the following:

	December 31,
(in thousands)	2021		2020
Assets:
Operating lease right-of-use assets	$	34,183	$	17,688
Liabilities:
Current operating lease liabilities	$	11,998	$	10,603
Long-term operating lease liabilities	35,492		12,739
Total lease liabilities	$	47,490	$	23,342

On October 4, 2021, an office lease with an approximate 10-year term with an unrelated third party commenced. The Company accounted for this lease as an operating lease and established a lease liability and right-of-use asset of approximately $34.6 million and $25.3 million, respectively, during the fourth quarter of 2021.

Other information related to the Company's lease arrangements is as follows:

	Year Ended December 31,
(in thousands)	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,528		$	11,926
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating lease assets obtained in exchange for operating lease liabilities	$	25,852		$	2,364
Weighted-average remaining lease term	7.66 years			2.24 years
Weighted-average discount rate(1)	2.79		%	3.55		%

(1) Discount rates used for existing operating leases upon adoption of Topic 842 were established based on remaining lease term as of January 1, 2019.

Maturities of lease liabilities as of December 31, 2021 are as follows:

(in thousands)
2022	$	13,119
2023	7,435
2024	3,878
2025	3,855
2026	3,788
Thereafter	20,443
Total minimum lease payments	$	52,518
Less imputed interest	5,028
Present value of minimum lease payments	$	47,490

In the fourth quarter of 2021, the Company entered into one office lease agreement with an unrelated third-party that we expect to account for as an operating lease. This lease is not reflected in our consolidated balance sheets or in the table above as the lease has not commenced. The lease has an approximate 11-year term and expected to commence in the fourth quarter of 2023.

Related Party

The Company and family members of the Company's largest shareholder entered into an agreement that allows those family members to lease the Company aircraft from time to time for their personal use. The agreement provides for lease payments that contribute towards the fixed costs associated with the aircraft as well as reimbursement of the Company’s variable costs associated with operation of the aircraft, in compliance with, and to the extent authorized by, applicable regulatory requirements. The terms of the lease agreements are consistent with the terms of lease agreements that the Company has entered into with unrelated third parties for use of the aircraft. During the years ended December 31, 2021 and 2020, the Company received $0.2 million and $0.2 million, respectively, pursuant to this arrangement.

In December 2013, the Company's board of directors approved an arrangement between the Company and an entity controlled by the family members of the Company's largest shareholder to sublease approximately 2,200 square feet of office space

located in Chevy Chase, Maryland. The sublease had a month-to-month term, with a 90-day notice period and annual lease payments totaling approximately $0.1 million. The sublease was not renewed following April 2019. During the year ended December 31, 2019, the Company received approximately $49 thousand in rent payments associated with this lease. Subsequently, the entity affiliated with the Company's largest shareholder entered into a separate lease with a third-party lessor and the Company reimburses the entity for use of the space by the Company's Chairman. During the years ended December 31, 2020 and 2019, the Company reimbursed the entity approximately $66 thousand and $76 thousand, respectively.