Leases

12 Months Ended

Dec. 31, 2022

NOTE 16. LEASES

The Company determines if a contract is a lease at inception. We have leases primarily for office facilities and information technology equipment. All of our leases are classified as operating leases.

Supplemental balance sheet information related to the Company’s operating leases as of December 31, 2022 is as follows:


(in thousands)	December 31, 2022
Operating lease ROU assets(1)	$	13,396
Current portion of operating lease liabilities(2)		5,056
Noncurrent portion of operating lease liabilities(2)		10,227
Total operating lease liabilities	$	15,283

(1)

ROU assets are recorded in other assets on the Consolidated Balance Sheets.

(2)

Current portion and noncurrent portion of operating lease liabilities are recorded in other liabilities on the Consolidated Balance Sheets.


	December 31, 2022
Weighted-average remaining lease term	4.4 years
Weighted-average discount rate		4.6	%

The components of lease expense and other lease information for the year ended December 31, 2022 are as follows:


	Year Ended
(in thousands)	December 31, 2022
Operating lease cost	$	5,235
Short-term lease cost		84
Variable lease cost		1,798
Gross lease cost	$	7,117
Sub-lease income		(787	)
Net lease cost	$	6,330

Other lease information
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for operating leases	$	5,023

Our leases have remaining lease terms of 1 year to 10 years. These leases generally contain renewal options for periods ranging from two to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments. Expenses associated with operating leases are recorded in general and administrative expenses on the Consolidated Statement of Operations. Variable lease costs, such as utilities and common area maintenance charges, are excluded from lease liabilities and expensed as incurred. The variable lease costs are determined based on terms in the lease contracts and primarily relate to usage of the ROU asset and services received from the lessor.


(in thousands)	Operating Leases
2023	$	5,591
2024		4,112
2025		2,415
2026		1,623
2027		1,069
Thereafter		1,966
Total undiscounted lease payments		16,776
Less: imputed interest		1,493
Total lease liabilities	$	15,283