Leases

12 Months Ended

Dec. 31, 2024

Note 9. Leases

Leases. The Company is obligated as a lessee under certain non-cancelable operating leases for office space, and is also obligated to pay insurance, maintenance and other executory costs associated with the leases. In May 2016, the Company entered into a lease of office space in Chicago, Illinois. In November 2024, the Company amended the lease, which resulted in a reduction of its office space by 67%, extension of the lease term from June 2031 to June 2036 for the remaining portion, and paid a termination penalty of $10.5 million. This was accounted for as a lease modification. Monthly rental payments under the lease escalate by 2.5% each year through June 2031, then by 1.5% each year through the remainder of the lease. As a result of this lease modification, and the commencement of a separate lease, the Company recognized $4.7 million of right of use assets obtained in exchange for lease obligations during the year ended December 31, 2024.

As of December 31, 2024, the Company’s scheduled future minimum lease payments under operating leases having initial noncancelable lease terms of more than one year, is as follows (in thousands):


2025	$	5,257
2026		3,527
2027		2,033
2028		2,085
2029		1,993
Thereafter		12,365
Total minimum lease payments		27,260
Less: Imputed interest (1)		(6,630	)
Present value of the minimum lease payments		20,630
Less: Current maturities of lease obligations		(4,085	)
Long-term lease obligations	$	16,545

(1)

The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available from the Company’s lessors. Therefore, in order to discount lease payments to present value, the Company has estimated its incremental borrowing rate based on information available at the lease commencement, modification or acquisition date.

As of December 31, 2024 and 2023, the Company’s operating lease assets, included in Investments and other assets, net, were $16.8 million and $13.0 million, respectively, and operating lease liabilities were $20.6 million and $27.6 million, respectively, the current maturities of which is included in Other accrued liabilities and the long-term portion of which is included in Other noncurrent liabilities. The difference between the operating lease assets and the operating lease liabilities is primarily due to a lease incentive received related to the lease in Chicago, Illinois.

Other information related to the Company’s operating leases for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands, except months and percentages):


	Year Ended December 31,
Income statement information:	2024			2023			2022
Operating lease cost	$	2,986		$	3,035		$	2,993
Short-term lease cost		66			79			137
Variable lease cost		4,443			3,461			3,443
Total lease cost	$	7,495		$	6,575		$	6,573

Other information:
Cash paid for amounts included in the measurement of operating lease liabilities (1)	$	14,790		$	3,672		$	4,470
Weighted-average remaining lease term (in months)		130			89			101
Weighted-average discount rate as of December 31,		6.4	%		7.5	%		7.5	%

(1) The year ended December 31, 2024 includes a termination penalty of $10.5 million related to the lease amendment.