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Leases
 12 Months Ended
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,
202320222021
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 liabilities1,375 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 leases12.5 years13.4 years13.1 years
Finance leases10.3 years11.4 years12.2 years
Weighted Average Discount Rate
Operating leases5.07 %4.94 %4.92 %
Finance leases5.37 %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 
202521,148 3,484 
202621,080 3,098 
202720,818 2,989 
202820,886 2,935 
Thereafter181,071 18,044 
Total undiscounted lease payments286,293 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,
202320222021
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,
202320222021
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 liabilities1,375 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 leases12.5 years13.4 years13.1 years
Finance leases10.3 years11.4 years12.2 years
Weighted Average Discount Rate
Operating leases5.07 %4.94 %4.92 %
Finance leases5.37 %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 
202521,148 3,484 
202621,080 3,098 
202720,818 2,989 
202820,886 2,935 
Thereafter181,071 18,044 
Total undiscounted lease payments286,293 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,
202320222021
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