LEASES

6 Months Ended

Jun. 30, 2023

LEASESThe Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the right-of-use assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 8.6 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were immaterial for the three and six months ended June 30, 2023 and 2022. See Note 2 “Impact of the Invasion of Ukraine” for discussion of impairment of right-of-use assets in Russia.

During the three and six months ended June 30, 2023 and 2022, the components of lease expense were as follows:


		Three Months Ended June 30,				Six Months Ended June 30,
	Income Statement Classification	2023		2022		2023		2022
Operating lease cost	Selling, general and administrative expenses	$	11,950	$	12,215	$	23,133	$	28,099
Variable lease cost	Selling, general and administrative expenses	3,388		2,341		7,036		5,528
Short-term lease cost	Selling, general and administrative expenses	955		1,427		3,611		2,466
Total lease cost		$	16,293	$	15,983	$	33,780	$	36,093

Supplemental cash flow information related to leases for the three and six months ended June 30, 2023 and 2022 was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	13,526	$	15,663	$	25,245	$	30,466
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3,679	$	5,248	$	7,028	$	24,732
Non-cash net increase/(decrease) due to lease modifications:
Operating lease right-of-use assets	$	4,508	$	1,581	$	5,891	$	(5,847)
Operating lease liabilities	$	5,026	$	325	$	6,140	$	(7,109)

Weighted average remaining lease term and discount rate as of June 30, 2023 and 2022 were as follows:


	As of June 30, 2023		As of June 30, 2022
Weighted average remaining lease term, in years:
Operating leases	5.2		5.7
Weighted average discount rate:
Operating leases	3.8	%	2.2	%

As of June 30, 2023, operating lease liabilities will mature as follows:


Year ending December 31,	Lease Payments
2023 (excluding six months ended June 30, 2023)	$	23,155
2024	39,896
2025	31,827
2026	25,524
2027	16,712
Thereafter	32,410
Total lease payments	169,524
Less: imputed interest	(14,536)
Total	$	154,988

The Company had committed to payments of $14.5 million related to operating lease agreements that had not yet commenced as of June 30, 2023. These operating leases will commence on various dates during 2023 and 2024 with lease terms ranging from 3.0 to 7.3 years. The Company did not have any material finance lease agreements that had not yet commenced.