Leases

3 Months Ended

Mar. 31, 2022

We lease office space and equipment under non-cancelable operating leases. We recognize operating lease expense on a straight-line basis over the lease term, which may include renewal or termination options that are reasonably certain of exercise. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets and are expensed on a straight-line basis. Most leases include one or more options to renew, with renewal terms that can extend the lease term up to seven years. The exercise of lease renewal options is at our sole discretion. Certain of our lease agreements include rental payments that are adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The table below summarizes the carrying amount of our operating lease assets and liabilities:


Leases	Classification	March 31, 2022		December 31, 2021
Assets
Operating lease assets	Operating lease assets	$	206,673	$	215,995
Total lease assets		$	206,673	$	215,995
Liabilities
Current
Operating lease liabilities	Accounts payable, accrued expenses and other	$	32,699	$	30,828
Noncurrent
Operating lease liabilities	Noncurrent operating lease liabilities	225,386		236,026
Total lease liabilities		$	258,085	$	266,854

The table below summarizes total lease costs:


	Three Months Ended March 31,
Lease Cost		2022		2021
Operating lease costs		$	12,362	$	12,082
Short-term lease costs		405		489
Variable lease costs		3,228		3,463
Sublease income		(266)		(1,048)
Total lease cost, net		$	15,729	$	14,986

We sublease certain of our leased office spaces to third parties. Our sublease portfolio consists of leases of office space that we have vacated before the lease term expiration. Operating lease expense on vacated office space is reduced by sublease rental income, which is recorded to SG&A expenses on the Condensed Consolidated Statements of Comprehensive Income. Our sublease arrangements do not contain renewal options or restrictive covenants. We estimate future sublease rental income to be $0.6 million in the remainder of 2022, $0.7 million in 2023, $0.7 million in 2024, and $0.3 million in 2025. There is no future sublease rental income estimated for the years beyond 2025.

The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheets:


	As of March 31, 2022
2022 (remaining)	$	36,769
2023	48,236
2024	42,924
2025	35,795
2026	31,254
Thereafter	135,619
Total future lease payments	330,597
Less: imputed interest	(72,512)
Total	$	258,085

The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate:


	Three Months Ended March 31,
		2022			2021
Cash paid for amounts included in the measurement of operating lease liabilities		$	11,693		$	15,345

Operating lease assets obtained in exchange for lease liabilities		$	411		$	680

Weighted average remaining lease term (years)
Operating leases		8.7			6.1

Weighted average discount rate
Operating leases		5.4		%	5.4		%