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Leases | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Leases | 10. Leases As of December 31, 2023, 2022 and 2021, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases. The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five to fifteen years. The Company also leases other equipment and vehicles primarily under non-cancelable operating and finance leases that expire at various dates through 2028. The following table presents the components of the Company’s lease cost, lease term and discount rate during the years ended December 31, 2023, 2022 and 2021 (in thousands, except years and percentages):
|  |  |  | Year Ended December 31,
|  |  |  | 2023 |  | 2022 |  | 2021
Lease Cost |  |  |  |  |  |  |  |
Operating lease cost |  |  |  | $ | 22,955 |  |  | $ | 20,305 |  |  | $ | 11,646 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  | 3,350 |  |  | 3,253 |  |  | 3,082 |
Interest on lease liabilities |  |  |  | 1,375 |  |  | 1,439 |  |  | 1,495 |
Variable lease cost(1) |  |  |  | 10,835 |  |  | 10,012 |  |  | 6,699 |
Total lease costs |  |  |  | $ | 38,515 |  |  | $ | 35,009 |  |  | $ | 22,922 |
Weighted Average Remaining Lease Term |  |  |  |  |  |  |  |
Operating leases |  |  |  | 12.5 years |  | 13.4 years |  | 13.1 years
Finance leases |  |  |  | 10.3 years |  | 11.4 years |  | 12.2 years
Weighted Average Discount Rate |  |  |  |  |  |  |  |
Operating leases |  |  |  | 5.07 | % |  | 4.94 | % |  | 4.92 | %
Finance leases |  |  |  | 5.37 | % |  | 5.30 | % |  | 5.30 | %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases as the Company does not separate lease from non-lease components. In the second quarter of 2021, the fifteen-year term 1310 Harbor Bay Lease commenced once the building was made ready and available for its intended use. The Company determined that the 1310 Harbor Bay lease is a non-cancelable operating lease which will expire in 2036. During the third quarter of 2021, we signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California. Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. Phase 1 of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. As of December 31, 2023, the lease for the Phase 2 premises has not commenced as the improvements to the premises have not been completed nor has it been made ready and available for its intended use. Per the terms of the lease, the Company anticipates that the lease will commence for the Phase 2 premises no later than the second quarter of 2025. The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. During the year ending December 31, 2022, additional office space was made available for the Company’s use at its headquarters and certain existing property leases were modified. During the year ending December 31, 2023, additional office space was made available for the Company’s use at its headquarters. This resulted in an increase of operating right-of-use (“ROU”) assets in exchange for operating leases liabilities in both years. The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of December 31, 2023 (in thousands):
|  | Operating Lease Payments(1) |  | Finance Lease Payments
Year Ending December 31: |  |  |  |
2024 |  | $ | 21,290 |  |  | $ | 3,559 |
2025 |  | 21,148 |  |  | 3,484 |
2026 |  | 21,080 |  |  | 3,098 |
2027 |  | 20,818 |  |  | 2,989 |
2028 |  | 20,886 |  |  | 2,935 |
Thereafter |  | 181,071 |  |  | 18,044 |
Total undiscounted lease payments |  | 286,293 |  |  | 34,109 |
Less imputed interest |  | (77,861) |  |  | (8,198) |
Present value of lease liabilities |  | $ | 208,432 |  |  | $ | 25,911 |
(1) The table above excludes the estimated future minimum lease payments of Phase 2 of the 620 Roseville Parkway Lease due to uncertainty around when Phase 2 lease will commence and payments will be due. The total estimated lease payments of the Phase 2 lease is approximately $10.3 million. Supplemental cash flow information related to leases during the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 19,662 |  |  | $ | 17,554 |  |  | $ | 9,690 |
Financing cash flows from finance leases |  | $ | 1,981 |  |  | $ | 1,751 |  |  | $ | 1,451 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases |  | $ | 9,339 |  |  | $ | 72,279 |  |  | $ | 101,510 |
Finance leases |  | $ | 1,118 |  |  | $ | 305 |  |  | $ | 1,346 |
Leases | 10. Leases As of December 31, 2023, 2022 and 2021, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases. The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five to fifteen years. The Company also leases other equipment and vehicles primarily under non-cancelable operating and finance leases that expire at various dates through 2028. The following table presents the components of the Company’s lease cost, lease term and discount rate during the years ended December 31, 2023, 2022 and 2021 (in thousands, except years and percentages):
|  |  |  | Year Ended December 31,
|  |  |  | 2023 |  | 2022 |  | 2021
Lease Cost |  |  |  |  |  |  |  |
Operating lease cost |  |  |  | $ | 22,955 |  |  | $ | 20,305 |  |  | $ | 11,646 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  | 3,350 |  |  | 3,253 |  |  | 3,082 |
Interest on lease liabilities |  |  |  | 1,375 |  |  | 1,439 |  |  | 1,495 |
Variable lease cost(1) |  |  |  | 10,835 |  |  | 10,012 |  |  | 6,699 |
Total lease costs |  |  |  | $ | 38,515 |  |  | $ | 35,009 |  |  | $ | 22,922 |
Weighted Average Remaining Lease Term |  |  |  |  |  |  |  |
Operating leases |  |  |  | 12.5 years |  | 13.4 years |  | 13.1 years
Finance leases |  |  |  | 10.3 years |  | 11.4 years |  | 12.2 years
Weighted Average Discount Rate |  |  |  |  |  |  |  |
Operating leases |  |  |  | 5.07 | % |  | 4.94 | % |  | 4.92 | %
Finance leases |  |  |  | 5.37 | % |  | 5.30 | % |  | 5.30 | %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases as the Company does not separate lease from non-lease components. In the second quarter of 2021, the fifteen-year term 1310 Harbor Bay Lease commenced once the building was made ready and available for its intended use. The Company determined that the 1310 Harbor Bay lease is a non-cancelable operating lease which will expire in 2036. During the third quarter of 2021, we signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California. Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. Phase 1 of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. As of December 31, 2023, the lease for the Phase 2 premises has not commenced as the improvements to the premises have not been completed nor has it been made ready and available for its intended use. Per the terms of the lease, the Company anticipates that the lease will commence for the Phase 2 premises no later than the second quarter of 2025. The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. During the year ending December 31, 2022, additional office space was made available for the Company’s use at its headquarters and certain existing property leases were modified. During the year ending December 31, 2023, additional office space was made available for the Company’s use at its headquarters. This resulted in an increase of operating right-of-use (“ROU”) assets in exchange for operating leases liabilities in both years. The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of December 31, 2023 (in thousands):
|  | Operating Lease Payments(1) |  | Finance Lease Payments
Year Ending December 31: |  |  |  |
2024 |  | $ | 21,290 |  |  | $ | 3,559 |
2025 |  | 21,148 |  |  | 3,484 |
2026 |  | 21,080 |  |  | 3,098 |
2027 |  | 20,818 |  |  | 2,989 |
2028 |  | 20,886 |  |  | 2,935 |
Thereafter |  | 181,071 |  |  | 18,044 |
Total undiscounted lease payments |  | 286,293 |  |  | 34,109 |
Less imputed interest |  | (77,861) |  |  | (8,198) |
Present value of lease liabilities |  | $ | 208,432 |  |  | $ | 25,911 |
(1) The table above excludes the estimated future minimum lease payments of Phase 2 of the 620 Roseville Parkway Lease due to uncertainty around when Phase 2 lease will commence and payments will be due. The total estimated lease payments of the Phase 2 lease is approximately $10.3 million. Supplemental cash flow information related to leases during the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 19,662 |  |  | $ | 17,554 |  |  | $ | 9,690 |
Financing cash flows from finance leases |  | $ | 1,981 |  |  | $ | 1,751 |  |  | $ | 1,451 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases |  | $ | 9,339 |  |  | $ | 72,279 |  |  | $ | 101,510 |
Finance leases |  | $ | 1,118 |  |  | $ | 305 |  |  | $ | 1,346 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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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