LEASE

12 Months Ended

Dec. 31, 2024

NOTE 10:- LEASES

The Company has entered into operating lease agreements, primarily for office facilities located around the world. These leases expire at various dates through January 2044, including renewal options that are reasonably certain to be exercised. The Company's Headquarters Lease is its most significant lease.

The Company entered into a lease agreement for its corporate headquarters in April 2019 (the "Headquarters Lease"). According to the Headquarters Lease, the landlord constructed approximately 80,000 square meters (approximately 861,112 square feet) in Tel Aviv, Israel (the "Premises"), which are leased to the Company and serve as its corporate headquarters. The transfer of possession of the Premises to the Company took place in two phases, in 2022 and 2023. The initial lease term is 10 years, which commenced upon the transfer of possession of the first phase of the Premises. The Company has options to extend the lease for additional periods of up to 15 years, most of which are at its sole discretion and were included in the lease term for accounting purposes, as their exercise was determined to be reasonably certain. Lease payments under the Headquarters Lease are denominated in NIS and are linked to changes in the Israeli Consumer Price Index.

The components of lease expense were as follows for the periods presented:


	Year ended December 31,
	2024		2023		2022

Operating and variable lease cost	$	42,080	$	38,839	$	36,679
Short-term lease cost	1,974		1,916		2,405

Total operating lease cost	$	44,054	$	40,755	$	39,084

The weighted-average remaining lease term and discount rate related to operating leases were as follows:


	December 31,
	2024	2023

Weighted average remaining lease term	17.93	17.88
Weighted average discount rate	5.8%	5.7%

NOTE 10:- LEASES (Cont.)

Cash payments related to operating lease liabilities for the years ended December 31, 2024, 2023 and 2022, were $31,583, $43,324, and $45,051, respectively.

The maturities of the Company’s operating lease liabilities were as follows:


Fiscal years ending December 31,	December 31, 2024

2025	$	28,709
2026	38,437
2027	37,532
2028	37,789
2029	36,625
Thereafter	464,604

Total undiscounted lease payments	$	643,696

Less imputed interest	$	246,630

Total lease liabilities	$	397,066

The Company subleases certain unused office space to third parties. Sublease income was immaterial for the years ended December 31, 2024, 2023 and 2022.

During the year ended December 31, 2023, the Company recorded an impairment charge of $25,525 for certain ROU assets. This impairment was attributed to leased office facilities that are no longer used for the Company’s business operation, part of which are being subleased. Refer to Note 17 for additional information. No material impairment was recognized during the year ended December 31, 2024.

During the years ended December 31, 2024 and 2023, the Company modified, or terminated, certain leases of office facilities in Ukraine due to the Russia-Ukraine conflict that began in February 2022. The Company also received certain rent concessions in connection with these leases. The impact on the Company's consolidated financial statements was immaterial.