Leases

12 Months Ended

Dec. 31, 2024

The Company has operating leases primarily for corporate offices and data centers. Excluding office leases, leases with an initial term of 12-months or less that do not include an option to purchase the underlying asset are not recorded on the consolidated balance sheet and are expensed on a straight-line basis over the lease term.

The Company’s leases typically include certain renewal options to extend the leases for up to 25 years, some of which include options to terminate the leases within one year. The exercise of lease renewal options is at the Company’s sole discretion. The Company combines lease and non-lease components of its leases and currently has no leases with options to purchase the leased property. Payments of maintenance and property tax costs paid by the Company are accounted for as variable lease cost, which are expensed as incurred.

The Company has entered into an assignment and assumption of lease agreement with a third-party for one of its corporate offices. The third-party is responsible for making payments directly to the landlord and the related lease's initial term expires on September 30, 2031. During an initial period ending April 30, 2025, the Company is required to make a base rent contribution of less than $0.1 million per month to the third-party, with the third-party responsible for the entirety of the lease payments after that date.

The components of lease cost are as follows (in thousands):


	Years Ended December 31,
	2024		2023		2022
Operating lease cost	$	11,053	$	13,074	$	12,506
Variable lease cost	1,266		2,663		2,771
Sublease income	(359)		—		—
Total lease cost	$	11,960	$	15,737	$	15,277

Supplemental cash flow information related to leases is as follows (in thousands):


	Years Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,678	$	14,039	$	14,020
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	4,875	$	6,359	$	7,693
Non-cash sublease payments
Operating leases	$	602	$	—	$	—

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):


	December 31,
	2024		2023
Assets:
Operating lease right-of-use assets	$	28,864	$	34,338
Liabilities:
Other current liabilities	$	9,265	$	9,348
Operating lease liabilities	22,592		29,074
Total operating lease liabilities	$	31,857	$	38,422


Weighted average remaining operating lease term (years)	4.71		5.31
Weighted average operating lease discount rate	3.76	%	3.47	%

The Company uses its incremental borrowing rate as the discount rate. As the Company enters into operating leases in multiple jurisdictions and denominated in currencies other than the U.S. dollar, judgment is used to determine the Company’s incremental borrowing rate including (1) conversion of its subordinated borrowing rate (using published yield curves) to an unsubordinated and collateralized rate, (2) adjusting the rate to align with the term of each lease, and (3) adjusting the rate to incorporate the effects of the currency in which the lease is denominated.

Maturities on lease liabilities as of December 31, 2024, are as follows (in thousands):


Fiscal Year Ending December 31,
2025	$	10,213
2026	6,974
2027	5,662
2028	4,889
2029	2,547
Thereafter	3,885
Total lease payments	34,170
Less: imputed interest	2,313
Total lease liability	$	31,857