LEASES

9 Months Ended

Sep. 30, 2023

Right-of-Use Assets and Operating Lease Liabilities

Amounts reported in the condensed consolidated balance sheets were:


	September 30, 2023		December 31, 2022
	(in thousands)
Assets:
Right-of-use assets	$	313,608	$	239,905
Liabilities:
Current operating lease liabilities	$	61,111	$	57,456
Long-term operating lease liabilities	286,910		215,119
Total operating lease liabilities	$	348,021	$	272,575

We expect to move from our current corporate headquarters in the three months ended December 31, 2023. As of September 30, 2023, we estimated impairment losses of up to a maximum of approximately $16 million to our right-of-use-asset and property and equipment associated with our current corporate headquarters to be recognized in the three months ended December 31, 2023. This estimate is subject to change in the near term.

Lease Costs and Other Information

Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statements of income were:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Operating lease cost	$	20,288	$	17,058	$	56,880	$	47,945
Short-term lease cost	3,102		2,490		10,336		7,493
Variable lease cost	15,130		12,161		35,248		28,726
Total lease costs	$	38,520	$	31,709	$	102,464	$	84,164

The weighted average remaining lease term and discount rate related to our lease liabilities as of September 30, 2023 were 7.2 years and 5.5%, respectively. As of September 30, 2022, the weighted average remaining lease term and discount rate related to our lease liabilities were 7.2 years and 3.6%, respectively.

Maturities

The maturities of our operating lease liabilities were:


	As of September 30, 2023
	(in thousands)
2023 (remainder of year)	$	13,269
2024	76,434
2025	60,750
2026	52,309
2027	45,767
Thereafter	179,532
Total future minimum lease payments	428,061
Less: imputed interest	(80,040)
Total operating lease liabilities	$	348,021