Leases

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and 2021:


		Three Months Ended September 30,					Nine Months Ended September 30,
Lease cost:	Classification	2022		2021			2022			2021
		(In thousands)
Operating lease cost	Occupancy	$	3,274	$	3,269		$	9,929		$	9,939
Operating lease cost for subleased/assigned properties	Other, net		—		507			469			1,548
Variable lease costs	Occupancy		49		2			60			9
Sublease income subleased/assigned properties	Other, net		—		(512	)		(405	)		(1,559	)
Net lease cost		$	3,323	$	3,266		$	10,053		$	9,937

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	September 30, 2022			December 31, 2021
Weighted average remaining lease term (in years)		10.9			11.5
Weighted average discount rate		5.9	%		5.9	%

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


	(In thousands)
Remainder of 2022	$	2,697
2023		10,793
2024		11,288
2025		11,110
2026		10,611
2027 and thereafter		67,909
Total lease payments		114,408
Less: imputed interest		31,122
Present value of lease liabilities	$	83,286