Envestnet, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2022

Leases The Company has operating leases for corporate offices and certain equipment, some of which may include options to extend the leases for up to 7 years, and some of which may include options to terminate the leases within 90 days. Terms of the Company's operating leases may change from time to time. The Company's leases have remaining lease terms of 3 months to 11 years. See "Note 5 - Property and Equipment, net" for further discussion of finance leases.

The following table illustrates information for the Company's operating leases as of and for the year ended December 31, 2022 and 2021:


	December 31,
	2022			2021
	(in thousands)
Total operating lease cost	$	15,157		$	18,600
Short-term lease cost	12,445			4,940
Weighted average remaining lease term (in years)	9.2			9.8
Weighted average discount rate	5.0		%	5.1		%
Cash paid for amounts included in the measurement of the operating lease liability	15,748			18,052

The Company did not have significant sublease income or variable lease cost for the years ended December 31, 2022 and 2021.

Future minimum lease payments under non-cancellable leases, as of December 31, 2022, were as follows:


	Operating Leases
	(in thousands)
Years Ending December 31,
2023	$	16,058
2024	17,925
2025	15,372
2026	15,242
2027	15,370
Thereafter	74,709
Total future minimum lease payments	154,676
Less imputed interest	(32,075)
Total operating lease liabilities	$	122,601

As a result of office closures in 2022, 2021 and 2020, the Company wrote down operating lease right-of-use assets totaling $13.0 million, $1.5 million and $2.7 million, respectively, as general and administrative expense in the consolidated statements of operations.

As of December 31, 2022, the Company has several operating lease commitments, primarily for our corporate offices, that have not yet commenced. These operating leases are expected to commence before January 2024 with lease terms of up to 10 years.