Leases

9 Months Ended

Sep. 30, 2023

LEASES

The Company has various operating leases for office space, vehicles and office equipment that expire through 2032. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Below is a summary of the Company's operating right-of-use assets and operating lease liabilities (in thousands):


	September 30, 2023
	(unaudited)
Operating right-of-use assets	$	52,679

Operating lease liabilities, current	$	(9,581)
Operating lease liabilities, long-term	(51,433)
Total operating lease liabilities	$	(61,014)

Operating lease liabilities, current are included within accrued expenses and other short-term liabilities in the condensed consolidated balance sheet.

Some leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. Lease modifications result in remeasurement of the right-of-use asset and lease liabilities.

Some of the real estate leases contain variable lease payments, including payments based on a Consumer Price Index ("CPI"). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption. Additional payments based on the change in a CPI are recorded as a period expense when incurred.

The Company has deposit guarantees issued by a financial institution to secure various operating lease agreements in connection with its office space.

Minimum lease payments for the Company's right-of-use assets over the remaining lease periods as of September 30, 2023, are as follows (in thousands):


	September 30, 2023
	(unaudited)
2023	$	2,863
2024	11,169
2025	10,234
2026	9,272
2027	9,478
Thereafter	23,483
Total undiscounted lease payments	$	66,499

Less: Imputed interest	(5,485)
Present value of lease liabilities	$	61,014

The weighted average remaining lease terms and discount rates for all operating leases were as follows as of September 30, 2023:


Remaining lease term and discount rate:
Weighted average remaining lease term (years)	6.65

Weighted average discount rate	2.85	%

Total operating lease cost for the three and nine months ended September 30, 2023 was $2,530 and $7,232, respectively, inclusive of sublease income of $435 and $1,336, respectively. Total operating lease cost for the three and nine months ended September 30, 2022 was $2,386 and $6,986, respectively, inclusive of sublease income of $184 and $482, respectively.