Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Consolidated Balance Sheet Information and Supplemental Information

The following was included in our consolidated balance sheet as of December 31, 2023 and 2022 (in thousands):

	2023		2022
Assets
ROU operating lease assets	$	63,047	$	65,262
Liabilities
Short-term operating lease liabilities	$	12,087	$	11,005
Long-term operating lease liabilities		56,259		59,736
Total operating lease liabilities	$	68,346	$	70,741

Components of Lease Costs

We recognize lease expense for operating leases on a straight-line basis over the term of the lease. Net lease cost for the years ended December 31, 2023, 2022 and 2021 was $14.4 million, $13.8 million, and $15.9 million, respectively. The components of lease costs for the years ended December 31, 2023, 2022 and 2021 were as follows, in thousands:

Lease Cost	Classification	2023		2022		2021
Operating lease cost (a)	Selling, general and administrative expenses	$	14,879	$	14,219	$	16,013
Sublease (income) (b)	Selling, general and administrative expenses		(488)		(409)		(75)
Net lease cost		$	14,391	$	13,810	$	15,938

(a)	Includes expense related to short-term leases and variable payments, which were not significant.
(b)	Does not include rental revenue from leases of hardware consoles to customers, which was not significant.

Supplemental cash flow information for the years ended December 31, 2023, 2022 and 2021 was as follows, in thousands:

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities	$	13,804	$	13,710	$	14,970
Right-of-use assets obtained in exchange for lease obligations	$	8,891	$	11,130	$	1,524

Generally, our lease agreements do not specify an implicit rate. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of December 31, 2023, 2022 and 2021, our lease agreements had the following remaining lease term and discount rates:

	2023	2022	2021
Weighted average remaining lease term	9.6 years	10.4 years	11.4 years
Weighted average discount rate	3.4%	3.4%	3.4%

Maturities of Operating Lease Liabilities

As of December 31, 2023, maturities of operating lease liabilities were as follows, in thousands:

Year ended December 31,	Amounts due under operating leases
2024	$	13,706
2025		10,718
2026		8,867
2027		7,432
2028		6,089
Thereafter		33,950
Total lease payments		80,762
Less: Imputed interest		(12,416)
Total	$	68,346