Leases

12 Months Ended

Dec. 31, 2021

8. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 9, we leased the property pursuant to a master lease for a term extending through September 30, 2030, with two five-year extensions. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the lease term. On commencement of the lease, we recorded a right-of-use asset and operating lease liability of $8.8 million.

Because the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:

		December 31,		December 31,
(in thousands)	Balance Sheet Classification	2021		2020
Right-of-use asset	Right-of-use lease asset, net	$	7,871	$	8,622

Operating lease liability (current)	Accounts payable, accrued and other liabilities	$	718	$	691
Operating lease liability (non-current)	Long-term lease liability		7,234		7,952
		$	7,952	$	8,643

	For the Year Ended December 31,
(in thousands	2021		2020
Cash paid for operating lease liabilities	$	1,001	$	321
Right-of-use asset obtained in exchange for operating lease obligation		—		8,841

Operating lease expense is recognized on a straight-line basis over the lease term. Future amortization of our lease liability as of December 31, 2021 is expected to be as follows:

(in thousands)
2022	$	1,001
2023		1,001
2024		1,008
2025		1,035
2026		1,064
Thereafter		4,253
Future lease payments, gross		9,362
Less: Imputed interest		(1,410	)
Operating lease liability	$	7,952