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LEASES | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
LEASES | 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 December 31, 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 year ended December 31, 2024, $26.7 million of right of use assets and $26.7 million of lease liabilities were added related to new operating leases and 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 consolidated statements of income during the three months ended June 30, 2024. 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. Additionally, in September 2024, the Company signed a new lease to secure approximately 60,000 square feet of office space in Overland Park, Kansas. The initial term of the lease is 129 months from the accounting commencement date, September 1, 2024. The Company has the option to renew the lease for two additional terms of 60 months each. The total legally binding minimum lease payments for the lease are approximately $12.0 million, net of allowance incentives. The following table presents the supplemental balance sheet information related to leases as of December 31, 2024 and 2023 (in millions):
| December 31, 2024 |  | December 31, 2023
Operating lease right of use assets | $ | 124.5 |  |  | $ | 136.6 |
Total leased assets | $ | 124.5 |  |  | $ | 136.6 |
Current operating lease liabilities (1) | $ | 19.9 |  |  | $ | 20.8 |
Non-current operating lease liabilities | 138.4 |  |  | 150.8 |
Total leased liabilities | $ | 158.3 |  |  | $ | 171.6 |
________________________________________________________ (1)These amounts are reflected within accounts payable and accrued liabilities in the consolidated balance sheets. The following table presents operating lease costs and other information as of and for the years ended December 31, 2024 and 2023 (in millions, except as stated):
| Year Ended December 31, 2024 |  | Year Ended December 31, 2023
Operating lease costs (1) | $ | 37.1 |  |  | $ | 34.5 |
Lease term and discount rate information: |  |  |
Weighted average remaining lease term (years) | 7.6 |  | 8.6
Weighted average discount rate | 3.6 | % |  | 3.4 | %
Supplemental cash flow information and non-cash activity: |  |  |
Cash paid for amounts included in the measurement of lease liabilities | $ | 27.2 |  |  | $ | 24.9 |
Right of use assets obtained in exchange for lease liabilities | 26.7 |  |  | 44.5 |
Reduction in lease liability due to remeasurement | (18.5) |  |  | — |
________________________________________________________ (1)Includes short-term lease and variable lease costs, which are immaterial. The total rent expense related to lease obligations, reflected in technology support services and facilities costs line items on the consolidated statements of income, for the years ended December 31, 2024, 2023, and 2022 were $37.1 million, $34.5 million, and $30.0 million, respectively. The maturities of the lease liabilities are as follows as of December 31, 2024 (in millions):
| December 31, 2024
2025 | $ | 25.5 |
2026 | 28.4 |
2027 | 25.0 |
2028 | 23.0 |
2029 | 14.4 |
After 2029 | 67.1 |
Total lease payments | $ | 183.4 |
Less: Interest | (25.1) |
Present value of lease liabilities | $ | 158.3 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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