LESSEE ACCOUNTING
The following table presents the amounts for ROU assets and lease liabilities:
| | | | | | | | | | | | | | |
| | As of December 31, |
| | 2022 | | 2021 |
| Right-of-use assets: | | | | |
| Operating | | $ | 151,518 | | | $ | 149,198 | |
| Finance | | 238,748 | | | 258,498 | |
| Total right-of-use assets | | $ | 390,266 | | | $ | 407,696 | |
| | | | |
| Lease liabilities: | | | | |
| Current: | | | | |
| Operating | | $ | 17,854 | | | $ | 16,781 | |
| Finance | | — | | | 123 | |
| Total current | | 17,854 | | | 16,904 | |
| Non-current: | | | | |
| Operating | | 135,932 | | | 134,897 | |
| Finance | | — | | | — | |
| Total non-current | | 135,932 | | | 134,897 | |
| Total lease liabilities | | $ | 153,786 | | | $ | 151,801 | |
As of December 31, 2022, we have prepaid our obligations regarding most of our finance ROU assets. Finance lease assets are reported net of accumulated amortization of $121.9 million and $95.7 million as of December 31, 2022 and 2021, respectively.
The following table presents the components of lease cost and weighted-average lease terms and discount rates for operating and finance leases:
| | | | | | | | | | | | | | | | | | | | |
| | For the years ended December 31, |
| | 2022 | | 2021 | | 2020 |
| Lease cost: | | | | | | |
| Operating lease cost | | $ | 25,345 | | | $ | 23,379 | | | $ | 24,000 | |
| Finance lease cost: | | | | | | |
| Amortization of right-of-use assets | | 29,906 | | | 29,270 | | | 27,611 | |
| Interest on lease liabilities | | 7 | | | 49 | | | 106 | |
| Total finance lease cost | | 29,913 | | | 29,319 | | | 27,717 | |
| Short-term lease cost | | 258 | | | — | | | 376 | |
| Variable lease cost | | 2,753 | | | 2,625 | | | 3,853 | |
| Total lease cost | | $ | 58,269 | | | $ | 55,323 | | | $ | 55,946 | |
| | | | | | | | | | | | | | |
| | As of December 31, |
| | 2022 | | 2021 |
| Lease term and discount rate: | | | | |
| Weighted-average remaining lease term: | | | | |
| Finance leases | | 0.0 years | | 0.3 years |
| Operating leases | | 8.0 years | | 10.8 years |
| | | | |
| Weighted-average discount rate: | | | | |
| Finance leases | | — | % | | 12.8 | % |
| Operating leases | | 5.9 | % | | 5.6 | % |
The following table presents the detailed cash flows from operating and finance leases:
| | | | | | | | | | | | | | | | | | | | |
| | For the years ended December 31, |
| | 2022 | | 2021 | | 2020 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows from operating leases | | $ | 24,769 | | | $ | 21,861 | | | $ | 21,834 | |
| Operating cash flows from finance leases | | 7 | | | 49 | | | 106 | |
| Financing cash flows from finance leases | | 124 | | | 430 | | | 499 | |
We obtained ROU assets in exchange for lease liabilities of $4.3 million, $26.1 million and $22.6 million upon commencement of operating leases during the year ended December 31, 2022, 2021 and 2020, respectively.
The following table presents future minimum lease payments of our lease liabilities as of December 31, 2022:
| | | | | | | | |
| | Operating Leases |
| Year ending December 31, | | |
| 2023 | | $ | 25,101 | |
| 2024 | | 23,180 | |
| 2025 | | 19,578 | |
| 2026 | | 18,770 | |
| 2027 | | 17,256 | |
| 2028 and beyond | | 97,738 | |
| Total future minimum lease payments | | 201,623 | |
| Less: Interest | | (47,837) | |
| Total lease liabilities | | $ | 153,786 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.