The Company accounts for its leases under Topic 842, “Leases”. The Company is obligated under a number of long-term operating leases for office space and office equipment, and for automobiles leased in Europe.

Most leases contain both lease components (fixed payments for rent) and non-lease components (common-area maintenance and other services). The Company has elected the practical expedient to separate lease and non-lease components for its office leases and has elected to group lease and non-lease components for its vehicle leases. Some leases contain renewal options with escalation clauses commensurate with local market fluctuations, however, generally limiting an annual increase to no more than 5.0% of the existing lease payment. The exercise of lease renewal options is at the Company’s sole discretion. The Company has excluded renewal options in the measurement of right-of-use assets and lease liabilities if they are not reasonably certain of exercise.

Operating leases are included in the right-of-use lease assets, short-term lease liabilities, and long-term lease liabilities on the consolidated balance sheet. The Company measures the operating lease liabilities at lease commencement date based on the present value of remaining lease payments using the rate implicit in the lease when readily determinable, or the Company’s secured incremental borrowing rate. The Company has made an accounting policy election not to recognize a lease liability or right-of-use asset for leases with a lease term of twelve months or less and do not include an option to purchase the underlying asset. The Company recognizes lease expense on a straight-line basis over the lease term and variable lease expense in the period incurred. Variable lease cost consists primarily of common-area maintenance, insurance, and taxes, which are paid based on actual costs incurred by the lessor. Operating lease cost for 2021 and 2020 was $7.6 million and $6.4 million, respectively. The Company incurred variable lease cost of $0.4 million and $0.5 million, and short-term lease cost of $0.4 million and $0.6 million in 2021 and 2020, respectively.

Maturities for the Company’s lease liabilities for all operating leases as of December 31, 2021 are as follows:

Year	Total Operating Leases
(amounts in thousands)
2022	$	6,514
2023		4,978
2024		3,337
2025		2,257
2026		1,697
2027 & thereafter		4,563
Total undiscounted operating lease payments		23,346
Less: Interest		(1,290	)
Total present value of operating lease liabilities	$	22,056

The weighted average remaining lease term and discount rate for all operating leases as of December 31, 2021 are as follows:

	December 31, 2021
Weighted average remaining lease term (years)		5.98
Weighted average remaining discount rate		2.08	%

Supplemental cash flow information related to the Company’s operating leases for 2021 is as follows:

(amounts in thousands)	December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflow from operating leases		7,611
Right-of-use assets obtained in exchange for new operating lease liabilities		6,522