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LEASES

6 Months Ended

Jun. 30, 2024

22. LEASES

The Company currently leases office space, data centers, remote network operations centers, and equipment under non-cancelable operating leases with third parties as of June 30, 2024. Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more, and some of which include the Company’s option to terminate the leases within one year. During the three months ended June 30, 2024, $0.3 million of right of use assets and $0.3 of lease liabilities were added related to existing lease extensions.

In May 2024, the Company entered into an agreement to amend its lease agreement for its Lenexa, Kansas office space. As part of the agreement, the lease term was reduced and now ends on September 30, 2025. In consideration for the reduction in lease term, the Company agreed to pay a reduction fee totaling $1.3 million to be paid in two equal installments in May 2024 and September 2025. The amended lease agreement was treated as a full termination without an embedded option to terminate included in the original agreement. Upon the termination, the Company considered the present value of future lease payments and adjusted its right of use assets and lease liabilities balances accordingly based on the percentage reduction in the remaining lease term; the right of use assets decreased $10.3 million and the lease liabilities decreased $11.0 million, with the $0.7 million difference recorded as a gain on lease termination in other

(expense) income, net in the condensed consolidated statements of income. The $1.3 million lease reduction payments are included in the present value of the lease liability balance along with normal rent payments and will be recognized through straight-line lease expense over the remaining term of the lease.

The following table presents the supplemental balance sheet information related to leases as of June 30, 2024 and December 31, 2023, respectively (in millions):


	June 30,		December 31,
	2024		2023
Operating lease right of use assets	$	115.3	$	136.6
Total leased assets	$	115.3	$	136.6

Current operating lease liabilities (1)	$	21.6	$	20.8
Non-current operating lease liabilities		126.3		150.8
Total leased liabilities	$	147.9	$	171.6

(1)	These amounts are reflected within accounts payable and accrued liabilities in the condensed consolidated balance sheets.

The following table presents operating lease costs and other information as of and for the three and six months ended June 30, 2024 and 2023, respectively (in millions, except as stated):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024			2023
Operating lease costs (1)	$	9.4	$	8.9	$	18.5		$	17.5

Lease term and discount rate information:
Weighted average remaining lease term (years)						7.7			9.9
Weighted average discount rate						3.3	%		3.2	%

Supplemental cash flow information and non-cash activity:
Cash paid for amounts included in the measurement of lease liabilities	$	7.6	$	6.6	$	14.4		$	13.0
Right of use assets obtained in exchange for lease liabilities		0.3		(0.2)		0.3			3.1
Reduction in lease liability due to remeasurement		(11.5)		—		(11.5)			—

(1)	Includes short-term lease and variable lease costs, which are immaterial.

The maturities of the lease liabilities are as follows as of June 30, 2024 (in millions):


	June 30,
	2024
Remainder of 2024	$	12.4
2025		26.3
2026		25.8
2027		21.5
2028		19.4
After 2028		64.0
Total lease payments	$	169.4
Less: Interest		(21.5)
Present value of lease liabilities	$	147.9