Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

7. Leases

The Company has operating leases for off-campus classroom and laboratory site locations, office space, office equipment, and optical fiber communication lines. These leases have terms that range from two months to ten years and eight months. At lease inception, we determine the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company has operating lease costs of $10,666, $9,723 and $7,594 for the years ended December 31, 2022, 2021 and 2020, respectively.

As of December 31, 2022, the Company had $23,310 of non-cancelable operating lease commitments for four off-campus classroom and laboratory sites and $192 for optical fiber communication lines that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 8.04 years, with a weighted-average discount rate of 3.35%. As of December 31, 2022, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at December 31, 2022, by year and in the aggregate, are as follows:

Year Ending December 31,	Amount
2023	$	10,844
2024		11,143
2025		10,867
2026		10,805
2027		10,193
Thereafter		35,104
Total lease payments	$	88,956
Less interest		11,515
Present value of lease liabilities	$	77,441