Leases

12 Months Ended

Dec. 31, 2021

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which introduced a new accounting model that requires most leases to be reported on the balance sheet. It also established disclosure requirements, which are more extensive than those required under prior U.S. GAAP. The standard required use of the modified retrospective (cumulative effect) transition approach and was effective for the Company in the first quarter of 2019. We selected the effective date of ASU 2016-02 as the date of initial application on transition, as permitted by ASU 2016-02, as amended ("Topic 842"). Under this transition method, the cumulative effect from prior periods upon applying the new guidance to arrangements containing leases was recognized in our consolidated balance sheets as of December 30, 2018. We did not recast comparative periods.

A summary of such cumulative effect adjustment is as follows:


(In thousands)	Increase / (Decrease)

Right-of-use asset	$	129,652
Prepaid expenses and other	3,968
Other current liabilities	22,767
Other liabilities	110,853

Arrangements Containing Leases

The cumulative effect adjustment above, is primarily comprised of arrangements where we are the lessee under operating leases for real estate (office, data center, and warehouse space) and certain dedicated fiber optic lines within our infrastructure. The duration of these agreements ranges from several months to in excess of 20 years. Generally, variable lease payments under these operating lease agreements relate to amounts based on changes to an index or rate (i.e. percentage change in the consumer price index). We do not have any arrangements where we are the lessee, classified as finance leases in our consolidated financial statements.

In addition to the items described above, we also procure hotel stays and rental cars in connection with associate business travel, and the use of certain equipment for trade shows, client presentations, conferences, and internal meetings. We have made the policy election to classify such arrangements as short-term leases, as defined in Topic 842. As such, we have not recognized lease liabilities and right-of-use assets for such arrangements in our consolidated financial statements. The duration of these arrangements is less than one month. Therefore, we do not disclose any short-term lease expense, as permitted by Topic 842. Expense for such items is recognized on a straight-line basis over the term of such arrangements.

Arrangements in which we are the lessor are not significant to our consolidated financial statements.

Amounts Included in the Consolidated Financial Statements

The following table presents a summary of lease liability and right-of-use asset amounts included in our consolidated balance sheets at the end of 2021 and 2020, under operating lease arrangements where we are the lessee:


(In thousands)
Description	Balance Sheet Classification	2021		2020

Right-of-use asset	Right-of-use assets	$	82,940	$	104,536
Lease liability - current	Other current liabilities	27,694		29,913
Lease liability - non-current	Other liabilities	67,160		90,106

Operating lease cost for 2021, 2020 and 2019 was $31 million, $37 million, and $37 million, respectively. Variable lease cost was less than $1 million in each of 2021, 2020 and 2019.

Maturity Analysis

Aggregate future payments under operating lease arrangements where we are the lessee (by fiscal year) are as follows:


(In thousands)	Operating Lease Obligations

2022	$	27,694
2023	20,826
2024	13,824
2025	8,884
2026	5,978
2027 and thereafter	32,031

Aggregate future payments	109,237
Impact of discounting	(14,383)

Aggregate lease liability at December 31, 2021	$	94,854

At December 31, 2021, the weighted-average remaining lease term and weighted-average discount rate for our operating lease arrangements where we are the lessee were 6.97 years and 3.3%, respectively.