Leases

12 Months Ended

Dec. 31, 2022

LeasesThe Company primarily leases office space, data centers, vehicles, and equipment. Some of our leases contain variable lease payments, typically payments based on an index. The Company’s leases have remaining lease terms of one year to thirty years, some of which include options to extend from one to five years or more. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not reasonably certain to exercise and are not included in Right of Use (ROU) assets and lease liabilities. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement. Additional payments based on the change in an index or rate are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability as of the modification date.

Other assets include ROU assets, other current liabilities include short-term operating lease liabilities, and other non-current liabilities include long-term lease liabilities at December 31, 2022 and 2021 is as follows (in thousands):


	2022		2021
ROU assets	$	94,604	$	84,777
Short term lease liabilities	$	22,661	$	20,296
Long term lease liabilities	$	86,671	$	79,905

The Company does not recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases were not material to the ROU assets and lease liabilities.

Under ASC 842, a Company discounts future lease obligations by the rate implicit in the contract, unless the rate cannot be readily determined. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. In determining the borrowing rate, the Company considers the applicable lease terms, the Company's cost of borrowing, and for leases denominated in a foreign currency, the collateralized borrowing rate that the Company would obtain to borrow in the same currency in which the lease is denominated.

Total lease costs for the years ended December 31, 2022, 2021, and 2020 were $24.1 million, $22.6 million, and $20.7 million, respectively. Variable lease costs and short-term lease costs were immaterial for all periods presented.

The supplementary cash and non-cash disclosures for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands):


	2022		2021		2020
Cash paid for operating lease liabilities	$	25,403	$	23,803	$	20,068
ROU assets obtained in exchange for new operating lease obligations	$	31,204	$	29,428	$	7,134
Weighted-average remaining lease term (years)	6.09		5.99		7.07
Weighted-average discount rate	3.64%		3.80%		4.18%

Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands):


2023	$	26,163
2024	24,571
2025	21,787
2026	16,905
2027	9,251
Thereafter	23,675
Total lease payments	122,352
Less imputed interest	13,020
Present value of lease liabilities	$	109,332