Leases

9 Months Ended

Sep. 30, 2024

The Company leases certain office space, construction and office equipment, vehicles and temporary housing generally under non-cancelable operating leases. Leases with an initial term of one year or less are not recorded on the balance sheet, and the Company generally recognizes lease expense for these leases on a straight-line basis over the lease term. As of September 30, 2024, the Company’s operating leases have remaining lease terms ranging from less than one year to 14 years, some of which include options to renew the leases. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The following table presents components of lease expense for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Operating lease expense	$	3,471	$	4,701	$	9,993	$	11,562
Short-term lease expense(a)	16,682		12,881		42,550		39,492
	20,153		17,582		52,543		51,054
Less: Sublease income	202		198		604		590
Total lease expense	$	19,951	$	17,384	$	51,939	$	50,464

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(a)Short-term lease expense includes all leases with lease terms of up to one year. Short-term leases include, among other things, construction equipment rented on an as-needed basis as well as temporary housing.

The following table presents supplemental balance sheet information related to operating leases:


(dollars in thousands)	Balance Sheet Line Item	As of September 30, 2024			As of December 31, 2023
Assets
Right-of-use assets	Other assets	$	51,405		$	48,878
Total lease assets		$	51,405		$	48,878
Liabilities
Current lease liabilities	Accrued expenses and other current liabilities	$	6,925		$	6,275
Long-term lease liabilities	Other long-term liabilities	49,989			47,781
Total lease liabilities		$	56,914		$	54,056
Weighted-average remaining lease term		9.5 years			10.3 years
Weighted-average discount rate		11.95		%	12.13		%

The following table presents supplemental cash flow information and non-cash activity related to operating leases:


	Nine Months Ended September 30,
(in thousands)	2024		2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	(9,663)	$	(11,484)
Non-cash activity:
Right-of-use assets obtained in exchange for lease liabilities	$	7,772	$	3,629

The following table presents maturities of operating lease liabilities on an undiscounted basis as of September 30, 2024:


Year (in thousands)	Operating Leases
2024 (excluding the nine months ended September 30, 2024)	$	3,249
2025	12,532
2026	10,597
2027	9,145
2028	9,044
Thereafter	53,073
Total lease payments	97,640
Less: Imputed interest	40,726
Total	$	56,914