Leases

3 Months Ended

Mar. 31, 2022

Note 6 – Leases

The Company determines if a contract is or contains a lease at inception. The Company has entered into leases for certain facilities, vehicles and other equipment. The Company’s leases consist mainly of operating leases which expire at various dates through 2036. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease.

The components of lease expense were as follows:


	Three Months Ended March 31,
(in thousands)	2022		2021
Finance lease cost:
Amortization of right-of-use assets (included in depreciation expense)	$	24	$	194
Interest on lease liabilities		8		92
Operating lease cost		4,274		3,794
Short-term lease cost		80		90
Variable lease cost		469		467
Total lease cost	$	4,855	$	4,637


Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for finance lease	$	8	$	103
Operating cash flows used for operating leases	$	5,316	$	4,285
Financing cash flows used for finance lease	$	41	$	380
Right-of-use assets obtained in exchange for new operating lease liabilities	$	634	$	12,124

The lease assets and liabilities as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31,			December 31,
	2022			2021
Finance lease right-of-use assets (included in other assets)	$	736		$	760
Operating lease right-of-use assets	$	92,423		$	99,158
Finance lease liability, current (included in current installments of long-term debt)	$	167		$	165
Finance lease liability, noncurrent (included in long-term debt)	$	486		$	529
Operating lease liabilities, current (included in accrued liabilities)	$	12,186		$	13,465
Operating lease liabilities, noncurrent	$	85,024		$	90,878
Weighted average remaining lease term – finance leases	3.7 years			3.9 years
Weighted average remaining lease term – operating leases	10.1 years			10.0 years
Weighted average discount rate – finance leases		4.8	%		4.8	%
Weighted average discount rate – operating leases		4.1	%		4.1	%

Future annual minimum lease payments and finance lease commitments as of March 31, 2022 were as follows (in thousands):


Year ending December 31,	Operating Leases			Finance Leases
2022 (remaining nine months)		11,388			145
2023		13,864			194
2024		12,352			194
2025		11,785			178
2026		10,389			—
2027 and thereafter		60,237			—
Total minimum lease payments	$	120,015		$	711
Less: imputed interest		(22,805	)		(58	)
Present value of lease liabilities	$	97,210		$	653

As of March 31, 2022, the Company’s future operating leases that have not yet commenced include new facility leases in existing locations in the Americas which expire at various dates ranging from 2028 through 2032 and contain renewal options. The aggregate initial annual minimum lease payments of these leases approximate $3.0 million.