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


The Company has operating leases for its corporate offices and operating facilities. The Company determines if an arrangement is a lease at the inception of a contract. Effective January 1, 2019, right-of-use assets and operating lease liabilities are included in the consolidated balance sheet. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent net present value of the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at commencement date based on the net present value of the fixed lease payments over the lease term. The Company’s operating lease terms are generally five years or less. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating fixed lease expense is recognized on a straight-line basis over the lease term.


In accordance with ASC 842, the Company records on its consolidated balance sheet leases with a term greater than 12 months. The Company has elected, in compliance with current accounting standards, not to record leases with an initial term of 12 months or less in the consolidated balance sheet. ASC 842 requires the separation of the fixed lease components from the variable lease components. The Company has elected the practical expedient to account for separate lease components of a contract as a single lease cost thus causing all fixed payments to be capitalized. Non-lease and variable cost components are not included in the measurement of the right-of-use assets or operating lease liabilities. The Company also elected the package of practical expedients permitted within ASC 842, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage are not included in the right-of-use assets or operating lease liabilities. These are expensed as incurred and recorded as variable lease expense.


For the years ended December 31, 2021 and 2020, the components of lease expense were as follows (in thousands):

   
Year Ended December 31,
 
 
2021
   
2020
 
Operating lease cost
 
$
32,021
   
$
30,710
 
Short-term lease cost
   
1,160
     
1,454
 
Variable lease cost
   
7,057
     
5,752
 
Total lease cost*
 
$
40,238
   
$
37,916
 

*
Sublease income was immaterial


Lease costs are reflected in the consolidated statements of net income in the line item—rent, supplies, contract labor and other.


For the years ended December 31, 2021 and 2020, supplemental cash flow information related to leases was as follows (in thousands):

   
Year Ended December 31,
 
 
2021
   
2020
 
Cash paid for amounts included in the measurement of operating lease liabilities (in thousands)
 
$
33,192
   
$
30,307
 
                 
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands)
 
$
46,088
   
$
32,710
 



The aggregate future lease payments for operating leases as of December 31, 2021 were as follows (in thousands):

Fiscal Year
 
Amount
 
2022
 
$
32,945
 
2023
   
27,467
 
2024
   
20,876
 
2025
   
14,000
 
2026
    8,492  
2027 and therafter
   
7,055
 
Total lease payments
 
$
110,835
 
Less: imputed interest
   
6,175
 
Total operating lease liabilities
 
$
104,660
 


Average lease terms and discount rates were as follows:

 
Year Ended December 31,
 
   
2021
   
2020
 
Weighted-average remaining lease term - Operating leases
 
4.17 Years
   
4.05 Years
 
             
Weighted-average discount rate - Operating leases
   
2.77
%
   
3.1
%