LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

LEASES

Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of 1 year to 11 years. The lease term represents the non-cancelable period of the lease. For certain leases, the Company has an option to extend the lease term. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.

The Company elected certain practical expedients under Topic 842 which are: (i) to not record leases with an initial term of twelve months or less on the balance sheet; (ii) to combine the lease and non-lease components in determining the lease liabilities and right-of-use assets, and (iii) to carry forward prior conclusions about lease identification and classification.

The Company’s lease contracts do not provide an implicit borrowing rate; hence the Company determined the incremental borrowing rate based on information available at lease commencement to determine the present value of lease liability. The Company generally uses the parent entity’s incremental borrowing rates as the treasury operations are managed centrally by the parent entity and, consequently, the pricing of leases at a subsidiary level is typically significantly influenced by the credit risk evaluated at the parent or consolidated group level on the basis of guarantees or other payment mechanisms that allow the lessor to look beyond just the subsidiary for payment.

During the fiscal year ended December 31, 2021, the Company entered into new or modified lease agreements which were assessed under Topic 842 to be operating leases. The new or modified lease agreements resulted in the balance sheet recognition of $8.8 million in “Operating lease right-of use assets,” $7.7 million in “Operating lease liabilities, long-term,” and $1.1 million in “Operating lease liabilities, current.”

The components of lease expense are as follows:

	Year ended December 31,
(in thousands)	2021		2020
Operating lease cost	$	7,550	$	8,369
Variable lease cost	1,986		2,675
Total lease cost	$	9,536	$	11,044

Supplemental cash flow information related to leases are as follows:

	Year ended December 31,
(in thousands)	2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,644	$	9,584
ROU assets obtained in exchange for operating lease obligations	$	8,837	$	5,414

Other information related to leases are as follows:

	Year ended December 31,
	2021		2020
Operating leases
Weighted-average remaining lease term (years)	6.8		7.0
Weighted-average discount rate	6.3	%	7.1	%

Future minimum lease payments under non-cancelable operating leases as of December 31, 2021 are as follows (in thousands):

Years ending December 31,
2022	$	7,734
2023	7,226
2024	7,069
2025	5,870
2026	4,893
Thereafter	12,717
Total future minimum lease payments	$	45,509
Less: imputed interest	(9,043)
Total lease liability balance	$	36,466