Leases

6 Months Ended

Jun. 30, 2024

The Company leases facilities under non-cancelable operating lease agreements with varying terms that range from one to 10 years. In addition, some of these leases have renewal options for up to five years. The Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities on the Company's condensed consolidated balance sheets. The Company does not have any finance leases.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes initial direct costs incurred and excludes lease incentives. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs).

Operating lease costs were $2.3 million and $4.5 million for the three and six months ended June 30, 2024, respectively. Variable lease cost and short-term lease costs were immaterial during the three and six months ended June 30, 2024. Future minimum lease payments at June 30, 2024 under the Company’s non-cancelable leases were as follows (in thousands):


2024 (remaining six months)	$	4,449
2025	9,658
2026	9,106
2027	4,647
2028	1,698
Thereafter	3,125
Total future minimum lease payments	32,683
Less: Imputed interest	(3,681)
Present value of future minimum lease payments	29,002
Less: Current portion of operating lease liability	(7,696)
Operating lease liabilities - noncurrent	$	21,306

The following table presents supplemental information for the Company's non-cancelable operating leases for the six months ended June 30, 2024 and 2023 (in thousands, except for weighted average and percentage data):


	Six Months Ended June 30,
	2024			2023
Weighted average remaining lease term	3.84			3.81
Weighted average discount rate	5.69		%	4.69		%
Cash paid for amounts included in the measurement of lease liabilities	$	4,459		$	1,973
Leased assets obtained in exchange for new lease liabilities	$	9,159		$	3,637