Leases

12 Months Ended

Dec. 31, 2022

The Company has operating leases primarily for corporate offices and data centers. Excluding office leases, leases with an initial term of 12-months or less that do not include an option to purchase the underlying asset are not recorded on the consolidated balance sheet and are expensed on a straight-line basis over the lease term.

The Company’s leases typically include certain renewal options to extend the leases for up to 25 years, some of which include options to terminate the leases within one year. The exercise of lease renewal options is at the Company’s sole discretion. The Company combines lease and non-lease components of its leases and currently has no leases with options to purchase the leased property. Payments of maintenance and property tax costs paid by the Company are accounted for as variable lease cost, which are expensed as incurred.

The components of lease cost are as follows (in thousands):


	Years Ended December 31,
	2022		2021		2020
Operating lease cost	$	12,506	$	12,369	$	25,148
Variable lease cost	2,771		3,140		3,588
Sublease income	—		—		(134)
Total lease cost	$	15,277	$	15,509	$	28,602

Supplemental cash flow information related to leases is as follows (in thousands):


	Years Ended December 31,
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,020	$	19,623	$	18,827
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	7,693	$	20,944	$	11,431

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):


	December 31,
	2022			2021
Assets:
Operating lease right-of-use assets	$	40,031		$	47,825
Liabilities:
Other current liabilities	$	11,218		$	11,518
Operating lease liabilities	33,910			43,346
Total operating lease liabilities	$	45,128		$	54,864
Weighted average remaining operating lease term (years)	5.53			7.04
Weighted average operating lease discount rate	3.21		%	3.22		%

The Company uses its incremental borrowing rate as the discount rate. As the Company enters into operating leases in multiple jurisdictions and denominated in currencies other than the U.S. dollar, judgment is used to determine the Company’s incremental borrowing rate including (1) conversion of its subordinated borrowing rate (using published yield curves) to an unsubordinated and collateralized rate, (2) adjusting the rate to align with the term of each lease, and (3) adjusting the rate to incorporate the effects of the currency in which the lease is denominated.

Maturities on lease liabilities as of December 31, 2022, are as follows (in thousands):


Fiscal Year Ending December 31,
2023	$	12,565
2024	9,460
2025	7,333
2026	5,450
2027	4,586
Thereafter	9,645
Total lease payments	49,039
Less: imputed interest	3,911
Total lease liability	$	45,128

As of December 31, 2022, the Company has additional operating leases for office facilities that have not yet commenced with minimum lease payments of $0.6 million. These operating leases will commence in fiscal year 2023 with lease terms of one year to three years.