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Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases

NOTE 12 — Leases

We lease certain land, buildings and equipment under non-cancellable operating leases used in our operations. Operating lease assets represent our right to use an underlying asset for the lease term. Operating lease liabilities represent the present value of lease payments over the lease term, discounted using an estimate of our secured incremental borrowing rate because none of our leases contain a rate implicit in the lease arrangement.

The operating lease assets and liabilities are adjusted to include the impact of any lease incentives and non-lease components. We have elected not to separate lease and non-lease components, which include taxes and common area maintenance in some of our leases. Variable lease payments that depend on an index or a rate are included in lease payments using the prevailing index or rate in effect at lease commencement.

Options to extend or terminate a lease are included in the lease term when it is reasonably likely that we will exercise that option. We occasionally enter into short term operating leases with an initial term of twelve months or less. These leases are not recorded in the Consolidated Balance Sheets.

We determine if an arrangement is a lease or contains a lease at its inception, which normally does not require significant estimates or judgments. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants and we currently have no material sublease agreements.

In accordance with FASB Staff Q&A - Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic ("FASB Staff Q&A") issued in April 2020, we elected to account for any lease concessions resulting directly from the COVID-19 pandemic as if the enforceable rights and obligations for the concessions existed in the respective contracts at lease inception and as such we will not account for any concession as a lease modification. Guidance from the FASB Staff Q&A provided methods to account for rent deferrals which include the option to treat the lease as if no changes to the lease contract were made or to treat deferred payments as variable lease payments. The FASB Staff Q&A allows entities to select the most practical approach and does not require the same approach be applied consistently to all leases. As a result, we have accounted for lease deferrals as if no changes to the lease contract were made and will continue to recognize lease expense, on a straight-line basis, during the deferral periods. During the year ended December 31, 2020, these rent concessions related to the COVID-19 pandemic were not material.

Components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows:

 

 

Years Ended

December 31,

 

 

2021

 

 

2020

 

 

2019

 

Operating lease cost

$

5,144

 

 

$

4,763

 

 

$

4,342

 

Short-term lease cost

 

1,403

 

 

 

1,015

 

 

 

1,013

 

Total lease cost

$

6,547

 

 

$

5,778

 

 

$

5,355

 

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Years Ended

December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Cash paid for amounts included in the measurement of lease obligations

 

$

3,666

 

 

$

4,654

 

 

$

3,957

 

Leased assets obtained in exchange for new operating lease obligations

 

$

1,253

 

 

$

1,678

 

 

$

5,000

 

 

Supplemental balance sheet information related to leases was as follows:

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

2021

 

 

2020

 

Operating lease obligations

 

$

3,393

 

 

$

3,294

 

Long-term operating lease obligations

 

 

21,354

 

 

 

23,163

 

Total lease liabilities

 

$

24,747

 

 

$

26,457

 

Weighted-average remaining lease terms (years)

 

 

7.21

 

 

 

7.88

 

Weighted-average discount rate

 

 

6.27

%

 

 

6.40

%

 

Remaining maturity of our existing lease liabilities as of December 31, 2021 is as follows:

 

 

 

Operating Leases(1)

 

2022

 

$

4,826

 

2023

 

 

4,567

 

2024

 

 

4,402

 

2025

 

 

3,759

 

2026

 

 

2,815

 

Thereafter

 

 

11,525

 

Total

 

$

31,894

 

Less: interest

 

 

(7,147

)

Present value of lease payments

 

$

24,747

 

 

(1)

Operating lease payments include $651 of payments related to options to extend lease terms that are reasonably expected to be exercised.