The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets and operating lease obligations on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, other accrued expenses and current liabilities, and other long-term liabilities on the consolidated balance sheets.

Right of use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments under the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. At commencement date, the ROU asset also includes adjustments for lease prepayments, lease incentives received and the lessee's initial direct costs, if applicable. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rates are determined using rates specific to the term of the lease, economic environments where lease activity is concentrated, value of lease portfolio, and assuming full collateralization of the loans. Subsequent to the commencement date, the operating ROU asset is equal to the remeasured lease liability adjusted for cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, unamortized lease incentives, unamortized initial direct costs and any impairment of the ROU assets. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease cost for minimum lease payments is recognized on a straight-line basis over the lease term.

The Company does not recognize a lease liability or ROU asset for short-term leases (leases with a term of twelve months or less). For contracts with lease and non-lease components, the Company does not allocate the contract consideration, and accounts for the lease and non-lease components as a single lease component.

The Company’s operating leases consist of office facilities, office equipment and cars and the Company’s finance leases consist of office equipment and cars. The Company’s leases have remaining terms of less than one year to 15 years, some of which include one or more options to renew and some of which include options to terminate the leases within the next three years.

The components of lease cost were as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	13,403	$	13,754	$	13,412

Finance lease cost:
Amortization of ROU assets	$	266	$	440	$	634
Interest on lease liabilities		6		18		32
Total finance lease cost	$	272	$	458	$	666

Operating lease cost includes short-term leases and variable lease costs, which are immaterial. Rent cost related to operating leases for office facilities was $11.7 million, $12.2 million and $12.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Supplemental balance sheet information related to lease liabilities was as follows:


	December 31,
(in thousands, except lease term and discount rate)	2022			2021
Operating leases:
Operating lease ROU assets	$	33,601		$	28,494

Current portion of operating lease liabilities	$	10,396		$	9,933
Operating lease liabilities, net of current portion		24,065			19,550
Total operating lease liabilities	$	34,461		$	29,483

Weighted average remaining lease term	3.4			3.8
Weighted average discount rate		3.8	%		4.3	%

Finance leases:
Property and equipment	$	2,122		$	2,532
Accumulated depreciation		(2,054	)		(2,151	)
Property and equipment, net	$	68		$	381

Other accrued expenses and current liabilities	$	77		$	195
Other long-term liabilities		15			146
Total finance lease liabilities	$	92		$	341

Weighted average remaining lease term		1.0			1.5
Weighted average discount rate		2.7	%		2.9	%

Supplemental cash flow information related to leases was as follows (in thousands):


	Year Ended December 31,
	2022			2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(12,949	)	$	(12,058	)	$	(11,875	)
Operating cash flows from finance leases	$	(6	)	$	(18	)	$	(32	)
Financing cash flows from finance leases	$	(242	)	$	(407	)	$	(456	)

ROU assets obtained in exchange for lease obligations:
Operating leases	$	12,455		$	6,577		$	11,713
Finance leases		—		$	9		$	118

Maturities of operating lease liabilities as of December 31, 2022, were as follows (in thousands):


Year ending December 31,
2023	$	12,177
2024		8,832
2025		5,996
2026		4,696
2027		2,739
Thereafter		6,617
Total lease payments		41,057
Less: imputed interest		6,596
Total operating lease liabilities	$	34,461