Leases

12 Months Ended

Dec. 31, 2024

13. Leases

The Company has operating leases for its corporate offices and operating facilities. The Company determines if an arrangement is a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent net present value of the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at commencement date based on the net present value of the fixed lease payments over the lease term. The Company’s operating lease terms are generally five years or less. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. As most of the Company’s operating 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 lease payments. Operating fixed lease expense is recognized on a straight-line basis over the lease term. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage are not included in the right-of-use assets or operating lease liabilities. These are expensed as incurred and recorded as variable lease expense.

The components of lease expense were as follows.

	For the Year Ended
	December 31, 2024			December 31, 2023			December 31, 2022
	(In thousands)
Operating lease cost	$	41,751		$	38,559		$	35,154
Short-term lease cost		1,163			1,353			1,049
Variable lease cost		9,739			9,438			6,779
Sublease income		(481	)		(526	)		(492	)
Total lease cost	$	52,172		$	48,824		$	42,490

Lease costs are reflected in the consolidated statements of net income in the line item — rent, supplies, contract labor and other.

The supplemental cash flow information related to leases was as follows.

	For the Year Ended
	December 31, 2024		December 31, 2023		December 31, 2022
	(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	42,934	$	39,813	$	36,136
Right-of-use assets obtained in exchange for new operating lease liabilities	$	70,729	$	36,264	$	40,502

The aggregate future lease payments for operating leases as of December 31, 2024, were as follows.

Fiscal Year	Amount (In thousands)
2025	$	45,290
2026		37,572
2027		28,363
2028		18,999
2029 and thereafter		27,424
Total lease payments	$	157,648
Less: imputed interest		15,945
Total operating lease liabilities	$	141,703

Average lease terms and discount rates were as follows:

	As of the Year Ended
	December 31, 2024			December 31, 2023			December 31, 2022
Weighted-average remaining lease term	4.5 years			3.9 years			4.1 Years
Weighted-average discount rate		4.7	%		4.0	%		2.9	%