Leases

12 Months Ended

Dec. 31, 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 December 31, 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 Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets are included in other assets, while current and long-term operating lease liabilities are included in accrued expenses and other current liabilities, and other long-term liabilities, respectively, on the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments

arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The present value of future lease payments are discounted using either the implicit rate in the lease, if known, or the Company’s incremental borrowing rate for the specific lease as of the lease commencement date. The ROU asset is also adjusted for any prepayments made or incentives received. The lease terms include options to extend or terminate the lease only to the extent it is reasonably certain any of those options will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease components (e.g., fixed payments) separate from the non-lease components (e.g., common-area maintenance costs). The Company does not have any material financing leases.

The following table presents components of lease expense for the years ended December 31, 2024 and 2023:


	For the year ended December 31,
(in thousands)	2024		2023
Operating lease expense	$	13,524	$	14,416
Short-term lease expense(a)	55,425		54,451
	68,949		68,867
Less: Sublease income	897		788
Total lease expense	$	68,052	$	68,079

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(a)Short-term lease expense includes all leases with lease terms ranging from less than one month 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:


		As of December 31,
(dollars in thousands)	Balance Sheet Line Item	2024			2023
Assets
ROU assets	Other assets	$	41,695		$	48,878
Total lease assets		$	41,695		$	48,878
Liabilities
Current lease liabilities	Accrued expenses and other current liabilities	$	7,066		$	6,275
Long-term lease liabilities	Other long-term liabilities	38,630			47,781
Total lease liabilities		$	45,696		$	54,056
Weighted-average remaining lease term		8.0 years			10.3 years
Weighted-average discount rate		9.73		%	12.13		%

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


	As of December 31,
(in thousands)	2024		2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	(13,013)	$	(14,733)
Non-cash activity:
ROU assets obtained in exchange for lease liabilities	$	10,817	$	6,465

The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2024:


Year (in thousands)	Operating Leases
2025	$	10,958
2026	9,234
2027	7,687
2028	7,291
2029	6,792
Thereafter	25,097
Total lease payments	67,059
Less: Imputed interest	21,363
Total	$	45,696