Leases

12 Months Ended

Dec. 31, 2024

The Company’s operating leases consist of office facilities, office equipment, and automobiles. As of December 31, 2024, the Company’s leases have remaining terms of less than one year to nine 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, and utilities. 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,
	2024		2023		2022
Operating lease cost (1)	$	17,890	$	20,008	$	20,772
Variable lease cost	4,681		4,594		4,658
Short-term lease cost	—		—		16
Total operating lease cost	$	22,571	$	24,602	$	25,446

(1)Operating lease cost includes rent cost related to operating leases for office facilities of $16,927, $19,199, and $20,027 for the years ended December 31, 2024, 2023, and 2022, respectively.

Supplemental operating cash flows and other information related to leases was as follows:


	Year Ended December 31,
	2024		2023		2022
Cash paid for operating leases included in operating cash flows	$	14,345	$	17,899	$	19,587
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	$	11,341	$	17,015	$	10,722

(1)Right‑of‑use assets obtained in exchange for new operating lease liabilities does not include the impact from acquisitions of $103, $397, and $1,237 for the years ended December 31, 2024, 2023, and 2022, respectively.

The weighted average remaining lease term for operating leases was 4.3 years and 4.6 years as of December 31, 2024 and 2023, respectively. The weighted average discount rate was 5.2% and 4.8% as of December 31, 2024 and 2023, respectively.

Maturities of operating lease liabilities are as follows:


	December 31, 2024
2025	$	13,587
2026	10,236
2027	7,335
2028	5,127
2029	3,483
Thereafter	4,002
Total future lease payments	43,770
Less: Imputed interest	(5,220)
Total operating lease liabilities	$	38,550

As of December 31, 2024, the Company had additional minimum operating lease payments of $496 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, 2024 and 2023, the Company recognized impairment charges of $2,823 and $2,239, respectively, 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 within various cost of revenues and operating expense line items in the consolidated statements of operations based on the function of the associated right‑of‑use asset. No impairment of right‑of‑use assets occurred for the years ended December 31, 2022.