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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The Company’s operating leases consist of office facilities, office equipment, and automobiles. As of December 31, 2023, the Company’s leases have remaining terms of less than one year to ten years, some of which include one or more options to renew, with renewal terms from one year to five years and some of which include options to terminate the leases from less than one year to five years.
The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease right‑of‑use assets, Operating lease liabilities, and Long‑term operating lease liabilities in the consolidated balance sheets. Operating lease right‑of‑use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right‑of‑use assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, if the Company’s leases do not provide an implicit rate, based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is determined based on the Company’s estimated credit rating, the term of the lease, economic environment where the asset resides, and full collateralization. The operating lease right‑of‑use assets also include any lease payments made and are reduced by any lease incentives. Options to extend or terminate the lease are considered in determining the lease term when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight‑line basis over the lease term.
For contracts with lease and non‑lease components, the Company has elected not to allocate the contract consideration, and account for the lease and non-lease components as a single lease component. Payments under the Company’s lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Variable lease cost may include common area maintenance, property taxes, utilities, and fluctuations in rent due to a change in an index or rate. The Company has elected not to recognize a right‑of‑use asset or lease liability for short‑term leases (leases with a term of twelve months or less). Short‑term leases are recognized in the consolidated statements of operations on a straight‑line basis over the lease term.
The components of operating lease cost reflected in the consolidated statements of operations were as follows:
Year Ended December 31,
202320222021
Operating lease cost (1)
$20,008 $20,772 $19,425 
Variable lease cost4,594 4,658 4,151 
Short-term lease cost— 16 21 
Total operating lease cost$24,602 $25,446 $23,597 
(1)Operating lease cost includes rent cost related to operating leases for office facilities of $19,199, $20,027, and $18,636 for the years ended December 31, 2023, 2022, and 2021, respectively.
Supplemental operating cash flow and other information related to leases was as follows:
Year Ended December 31,
202320222021
Cash paid for operating leases included in operating cash flows$17,899 $19,587 $19,636 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
$17,015 $10,722 $12,842 
(1)Right‑of‑use assets obtained in exchange for new operating lease liabilities does not include the impact from acquisitions of $397, $1,237, and $12,095 for the years ended December 31, 2023, 2022, and 2021, respectively.
The weighted average remaining lease term for operating leases was 4.6 years and 3.9 years as of December 31, 2023 and 2022, respectively. The weighted average discount rate was 4.8% and 3.4% as of December 31, 2023 and 2022, respectively.
Maturities of operating lease liabilities are as follows:
December 31, 2023
2024$13,416 
202510,499 
20268,122 
20275,635 
20283,856 
Thereafter6,744 
Total future lease payments48,272 
Less: Imputed interest(6,001)
Total operating lease liabilities$42,271 
As of December 31, 2023, the Company had additional minimum operating lease payments of $804 for executed leases that have not yet commenced, primarily for office locations.
The Company evaluates the recoverability of right‑of‑use assets whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. If circumstances require an asset to be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset to its carrying value. If the carrying value of the asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. During the year ended December 31, 2023, the Company recognized impairment charges of $2,239 to write‑down certain right‑of‑use assets to their fair value primarily as a result of the decision to vacate certain leased facilities. The impairment charges were recorded in General and administrative in the consolidated statements of operations. No impairment of right‑of‑use assets occurred for the years ended December 31, 2022 or 2021.
Leases Leases
The Company’s operating leases consist of office facilities, office equipment, and automobiles. As of December 31, 2023, the Company’s leases have remaining terms of less than one year to ten years, some of which include one or more options to renew, with renewal terms from one year to five years and some of which include options to terminate the leases from less than one year to five years.
The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease right‑of‑use assets, Operating lease liabilities, and Long‑term operating lease liabilities in the consolidated balance sheets. Operating lease right‑of‑use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right‑of‑use assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, if the Company’s leases do not provide an implicit rate, based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is determined based on the Company’s estimated credit rating, the term of the lease, economic environment where the asset resides, and full collateralization. The operating lease right‑of‑use assets also include any lease payments made and are reduced by any lease incentives. Options to extend or terminate the lease are considered in determining the lease term when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight‑line basis over the lease term.
For contracts with lease and non‑lease components, the Company has elected not to allocate the contract consideration, and account for the lease and non-lease components as a single lease component. Payments under the Company’s lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Variable lease cost may include common area maintenance, property taxes, utilities, and fluctuations in rent due to a change in an index or rate. The Company has elected not to recognize a right‑of‑use asset or lease liability for short‑term leases (leases with a term of twelve months or less). Short‑term leases are recognized in the consolidated statements of operations on a straight‑line basis over the lease term.
The components of operating lease cost reflected in the consolidated statements of operations were as follows:
Year Ended December 31,
202320222021
Operating lease cost (1)
$20,008 $20,772 $19,425 
Variable lease cost4,594 4,658 4,151 
Short-term lease cost— 16 21 
Total operating lease cost$24,602 $25,446 $23,597 
(1)Operating lease cost includes rent cost related to operating leases for office facilities of $19,199, $20,027, and $18,636 for the years ended December 31, 2023, 2022, and 2021, respectively.
Supplemental operating cash flow and other information related to leases was as follows:
Year Ended December 31,
202320222021
Cash paid for operating leases included in operating cash flows$17,899 $19,587 $19,636 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
$17,015 $10,722 $12,842 
(1)Right‑of‑use assets obtained in exchange for new operating lease liabilities does not include the impact from acquisitions of $397, $1,237, and $12,095 for the years ended December 31, 2023, 2022, and 2021, respectively.
The weighted average remaining lease term for operating leases was 4.6 years and 3.9 years as of December 31, 2023 and 2022, respectively. The weighted average discount rate was 4.8% and 3.4% as of December 31, 2023 and 2022, respectively.
Maturities of operating lease liabilities are as follows:
December 31, 2023
2024$13,416 
202510,499 
20268,122 
20275,635 
20283,856 
Thereafter6,744 
Total future lease payments48,272 
Less: Imputed interest(6,001)
Total operating lease liabilities$42,271 
As of December 31, 2023, the Company had additional minimum operating lease payments of $804 for executed leases that have not yet commenced, primarily for office locations.
The Company evaluates the recoverability of right‑of‑use assets whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. If circumstances require an asset to be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset to its carrying value. If the carrying value of the asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. During the year ended December 31, 2023, the Company recognized impairment charges of $2,239 to write‑down certain right‑of‑use assets to their fair value primarily as a result of the decision to vacate certain leased facilities. The impairment charges were recorded in General and administrative in the consolidated statements of operations. No impairment of right‑of‑use assets occurred for the years ended December 31, 2022 or 2021.