Leases

12 Months Ended

Dec. 31, 2022

Operating leases for our corporate offices have remaining lease terms ranging from five months to ten years, some of which include options to extend the leases for up to ten years. These options to extend have not been recognized as part of our operating lease right-of-use assets and lease liabilities as it is not reasonably certain that we will exercise these options. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. Certain leases contain provisions for property-related costs that are variable in nature for which we are responsible, including common area maintenance, which are expensed as incurred.

The components of lease expense recognized in the Consolidated Statements of Operations were as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	5,403	$	5,203	$	5,272
Variable lease cost	1,058		1,463		1,443
Total lease cost	$	6,461	$	6,666	$	6,715

Lease-related assets and liabilities were as follows (in thousands, except years and %):


	December 31,
	2022			2021
Assets
Prepaid expenses and other current assets	$	—		$	4,854
Operating lease right-of-use assets	23,485			41,710

Liabilities
Other current liabilities	$	3,357		$	1,874
Operating lease liabilities	50,237			55,733
Total lease liabilities	$	53,594		$	57,607

Weighted-average remaining lease term (years)	9.4			10.3
Weighted-average discount rate	3.9		%	4.0		%

Future minimum lease payments under non-cancellable leases as of December 31, 2022 were as follows (in thousands):


Years ending December 31,
2023(1)	$	2,615
2024	6,351
2025	6,837
2026	7,035
2027	7,239
Thereafter	35,042
Total future minimum lease payments	65,119
Less: imputed interest	(11,525)
Total	$	53,594

(1) Future minimum lease payments for the year ending December 31, 2023 are presented net of tenant improvement allowances of $3.5 million.

During the current year, we decided to exit and make available for sublease certain leased office spaces. As a result, we reassessed our asset groupings and evaluated the recoverability of our right-of-use and other lease related assets, and determined that the carrying value of the respective asset groups was not fully recoverable. We utilized discounted cash flow models to estimate the fair value of the asset groups taking into consideration the time period it will take to obtain a sublessee, the applicable discount rates and the anticipated sublease income and calculated the corresponding impairment loss. We used prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in real estate transactions. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. We recorded a net impairment of $22.0 million consisting of $17.6 million related to ROU assets and $4.4 million related to property and equipment associated with our leased office spaces. These amounts were recorded within General and administrative in our Consolidated Statements of Operations.