Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
We lease certain office space and equipment for use in our operations. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases ("ASC 842"). In order to meet the definition of a lease under ASC 842, the contractual arrangement must convey to us the right to control the use of an identifiable asset for a period of time in exchange for consideration. We recognize lease expense for these leases on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Some of our leases contain renewal options and in accordance with ASC 842, our lease terms include those renewals only to the extent that they are reasonably certain to be exercised. The exercise of these lease renewal options is generally at our discretion. In accordance with ASC 842, the lease liability is equal to the present value of the remaining lease payments while the right of use ("ROU") asset is based on the lease liability, subject to adjustment, such as for lease incentives. Our leases do not provide a readily determinable implicit interest rate and therefore, we must estimate our incremental borrowing rate. In determining our incremental borrowing rate, we consider the lease period, market interest rates, current interest rates on our senior notes and the effects of collateralization.
Our lease population at December 31, 2021 is comprised of operating leases where we are the lessee and these leases are primarily real estate for office space for our corporate office, division offices and design centers, in addition to leases of certain equipment. As allowed by ASC 842, we adopted an accounting policy election to not record leases with lease terms of twelve months or less on the consolidated balance sheets.
Lease cost included in our consolidated income statements in General and administrative expenses and Commissions and other sales costs is in the table below (in thousands). Our short-term lease costs and sublease income are de minimis.
Years Ended December 31,
2021 2020
Operating lease expense $ 7,613  $ 7,657 
Non-cash lease expense $ 6,342  $ 6,037 
Cash payments on lease liabilities $ 9,065  $ 9,013 
ROU assets obtained in exchange for new operating lease obligations $ 5,756  $ 1,364 
ROU assets are classified within Prepaids, other assets and goodwill on our consolidated balance sheets, while lease liabilities are classified within Accrued liabilities on our consolidated balance sheets. The following table contains additional information about our leases (dollars in thousands):
At December 31,
2021 2020
ROU assets $ 21,038 $ 21,624
Lease liabilities $ 26,171 $ 28,254
Weighted-average remaining lease term 4.1 years 4.0 years
Weighted-average discount rate (incremental borrowing rate) 4.76  % 4.54  %

Maturities of our operating lease liabilities as of December 31, 2021 are as follows (in thousands):
Year ended December 31,
2021 $ 9,009 
2022 7,505 
2023 4,633 
2024 3,408 
2025 2,187 
Thereafter 2,114 
Total payments 28,856 
Less: imputed interest (2,685)
Present value of lease liabilities $ 26,171