Leases

3 Months Ended

Mar. 31, 2025

The Company's lease portfolio is comprised of operating leases for office space and equipment. The majority of the Company's leases include both lease and non-lease components, which the Company accounts for differently depending on the underlying class of asset. Certain of the Company's leases include one or more options to renew or terminate the lease at the Company's discretion. Generally, the renewal and termination options are not included in the right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal and termination options and, when they are reasonably certain of exercise, includes the renewal or termination option in the lease term.

As most of the Company's leases do not provide an implicit interest rate, the Company utilizes an incremental borrowing rate based on the information available at the commencement date of the lease in determining the present value of lease payments. The Company has a centrally managed treasury function and, therefore, a portfolio approach is applied in determining the incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a fully collateralized basis over a similar term in an amount equal to the total lease payments in a similar economic environment.

As of March 31, 2025, office leases have remaining lease terms that range from less than one year to 10.9 years, some of which also include options to extend or terminate the lease. Most office leases contain both fixed and variable lease payments. Variable lease costs consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components for office leases.

As of March 31, 2025, equipment leases, which are comprised of vehicle and office equipment leases, have remaining terms that range from less than one year to 4.5 years, some of which also include options to extend or terminate the lease. The Company's equipment leases do not contain variable lease payments. The Company separates the lease and non-lease components for its equipment leases. Equipment leases do not comprise a significant portion of the Company's lease portfolio.

Lease cost components included within Operating expenses - General and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income were as follows:


	Three Months Ended March 31,
	2025		2024
Operating lease cost	$	5,122	$	5,637
Variable lease cost	2,270		$	2,455
Total lease cost	$	7,392	$	8,092

Supplemental cash flow information related to the Company's operating leases is as follows for the three months ended March 31:


	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,520	$	5,539
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	967	$	3,993

The weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, are as follows:


	2025		2024
Weighted Average Remaining Lease Term
Operating leases	7.5 years		7.3 years
Weighted Average Discount Rate
Operating leases	5.20	%	4.92	%

The future maturities of the Company's operating lease liabilities as of March 31, 2025, for the years ended December 31, are as follows:


	Operating Lease Maturity
2025	$	13,495
2026	17,550
2027	17,376
2028	14,977
2029	13,420
Thereafter	46,484
Total lease payments	123,302
Less: Interest	23,214
Present value of lease liabilities	$	100,088