LEASES

12 Months Ended

Dec. 31, 2024

NOTE 13—LEASES

The Company leases office space, data center facilities, and equipment used in connection with its operations under various operating leases, many of which contain escalation clauses.

ROU assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the present value of the Company’s obligation to make payments arising from leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term using the Company’s incremental borrowing rates on the lease commencement date or January 1, 2019 for leases that commenced prior to that date. The Company combines the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If the lease includes one or more options to extend the term of the lease, the renewal option is considered in the lease term if it is reasonably certain the Company will exercise the options. Lease expense is recognized on a straight-line basis over the term of the lease. Leases with an initial term of twelve months or less (“short-term leases”) are not recorded on the accompanying consolidated balance sheet.

Variable lease payments consist primarily of common area maintenance, utilities, and taxes, which are not included in the recognition of ROU assets and related lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.


Leases	Balance Sheet Classification	December 31, 2024		December 31, 2023

		(In thousands)
Assets:
Right-of-use assets	Other non-current assets	$	86,417	$	95,660


Liabilities:
Current lease liabilities	Accrued expenses and other current liabilities	$	19,213	$	16,389
Long-term lease liabilities	Other long-term liabilities	84,583		98,475
Total lease liabilities		$	103,796	$	114,864


Lease Cost	Income Statement Classification	Year Ended December 31, 2024		Year Ended December 31, 2023

		(In thousands)
Fixed lease cost	Cost of revenue	$	1,875	$	1,567

Fixed lease cost	General and administrative expense	22,032		20,960

Total fixed lease cost(a)		23,907		22,527

Variable lease cost	Cost of revenue	441		880
Variable lease cost	General and administrative expense	3,368		3,175
Total variable lease cost		3,809		4,055


Net lease cost		$	27,716	$	26,582

______________________

(a)Includes approximately $0.6 million and $1.5 million of short-term lease cost for the years ended December 31, 2024 and December 31, 2023, respectively.

Maturities of lease liabilities as of December 31, 2024(a):


	(In thousands)
2025	$	22,709
2026	19,423
2027	13,655
2028	12,799
2029	12,427
After 2029	38,594
Total	119,607
Less: Interest	(15,811)

Present value of lease liabilities	$	103,796

______________________

(a)Operating lease payments exclude $28.1 million of legally binding minimum lease payments for leases signed but not yet commenced.

The following are the weighted average assumptions used for lease term and discount rate:


	December 31, 2024		December 31, 2023
Remaining lease term	7.2 years		8.1 years
Discount rate	3.86	%	3.76	%


	Year Ended December 31, 2024		Year Ended December 31, 2023

	(In thousands)
Other information:
Right-of-use assets obtained in exchange for lease liabilities	$	11,420	$	19,258
Cash paid for amounts included in the measurement of lease liabilities	$	26,082	$	21,188