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Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Consolidated Balance Sheet Information and Supplemental Information

The following was included in our consolidated balance sheet as of December 31, 2022 and 2021 (in thousands):

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2022

    

2021

Assets

 

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ROU operating lease assets

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$

65,262

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$

65,913

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Liabilities

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Short-term operating lease liabilities

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$

11,005

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$

10,668

Long-term operating lease liabilities

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59,736

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61,526

Total operating lease liabilities

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$

70,741

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$

72,194

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Components of Lease Costs

We recognize lease expense for operating leases on a straight-line basis over the term of the lease. Net lease cost for the years ended December 31, 2022, 2021 and 2020 was $13.8 million, $15.9 million, and $16.7 million, respectively. The components of lease costs for the years ended December 31, 2022, 2021 and 2020 were as follows, in thousands:

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Lease Cost

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Classification

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2022

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2021

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2020

Operating lease cost (a)

 

Selling, general and administrative expenses

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$

14,219

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$

16,013

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$

16,735

Sublease (income) (b)

 

Selling, general and administrative expenses

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(409)

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(75)

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(15)

Net lease cost

 

  

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$

13,810

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$

15,938

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$

16,720

(a)

Includes expense related to short-term leases and variable payments, which were not significant.

(b)

Does not include rental revenue from leases of hardware consoles to customers, which was not significant.

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Supplemental cash flow information for the years ended December 31, 2022, 2021 and 2020 was as follows, in thousands:

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2022

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2021

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2020

Cash paid for amounts included in the measurement of lease liabilities

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$

13,710

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$

14,970

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$

15,059

Right-of-use assets obtained in exchange for lease obligations

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$

11,130

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$

1,524

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$

10,938

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Generally, our lease agreements do not specify an implicit rate. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length

of lease term and the risks of the economic environment in which the leased asset operates. As of December 31, 2022, 2021 and 2020, our lease agreements had the following remaining lease term and discount rates:

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2022

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2021

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2020

Weighted average remaining lease term

 

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10.4 years

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11.4 years

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11.5 years

Weighted average discount rate

 

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3.4%

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3.4%

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3.3%

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Maturities of Operating Lease Liabilities

As of December 31, 2022, maturities of operating lease liabilities were as follows, in thousands:

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Year ended December 31, 

    

Amounts due under operating leases

2023

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$

12,638

2024

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11,554

2025

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8,941

2026

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7,523

2027

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5,944

Thereafter

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37,983

Total lease payments

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84,583

Less: Imputed interest

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(13,842)

Total

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$

70,741

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