Leases

12 Months Ended

Dec. 31, 2022

14. 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 years ended December 31, 2022, 2021 and 2020:


		Year Ended December 31,
Lease cost:	Classification	2022			2021			2020
		(In thousands)
Operating lease cost	Occupancy	$	13,015		$	13,202		$	13,455
Operating lease cost for subleased/assigned properties	Other, net		469			2,054			2,404
Variable lease costs	Occupancy		96			13			26
Sublease income for subleased/assigned properties	Other, net		(405	)		(2,079	)		(2,420	)
Net lease cost		$	13,175		$	13,190		$	13,465

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 December 31,
Lease Term and Discount Rate	2022			2021
Weighted average remaining lease term (in years)		10.6			11.5
Weighted average discount rate		5.9	%		5.9	%

The following table presents the maturity of lease liabilities as of December 31, 2022:


	(In thousands)
2023	$	11,001
2024		11,481
2025		11,289
2026		10,790
2027		8,464
2028 and thereafter		59,630
Total lease payments		112,655
Less: imputed interest		29,979
Present value of lease liabilities	$	82,676