Leases

6 Months Ended

Jun. 30, 2022

12. Leases

The Company has operating leases for corporate offices with initial lease terms ranging from one year to 15 years. Certain leases contain options to extend the initial term at the Company’s discretion. The Company accounts for the option to extend when it is reasonably certain of being exercised. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants.

The following table presents the components of lease expense for the three and six months ended June 30, 2022 and 2021:


		Three Months Ended June 30,						Six Months Ended June 30,
Lease cost:	Classification	2022			2021			2022			2021
		(In thousands)
Operating lease cost	Occupancy	$	3,345		$	3,346		$	6,655		$	6,669
Operating lease cost for subleased/assigned properties	Other, net		13			544			469			1,041
Variable lease costs	Occupancy		4			2			11			8
Sublease income subleased/assigned properties	Other, net		(15	)		(544	)		(405	)		(1,047	)
Net lease cost		$	3,347		$	3,348		$	6,730		$	6,671

The Company determines whether an arrangement is, or includes, a lease at contract inception. Operating lease right-of-use assets and liabilities are recognized at commencement date and are initially measured based on the present value of lease payments over the defined lease term. As the Company's leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The weighted average remaining lease term and weighted average discount rate are as follows:


	As of
Lease Term and Discount Rate	June 30, 2022			December 31, 2021
Weighted average remaining lease term (in years)		11.0			11.5
Weighted average discount rate		5.9	%		5.9	%

The following table presents the maturity of lease liabilities as of June 30, 2022:


	(In thousands)
Remainder of 2022	$	5,492
2023		10,988
2024		11,466
2025		11,274
2026		10,789
2027 and thereafter		67,975
Total lease payments		117,984
Less: interest		32,429
Present value of lease liabilities	$	85,555