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Finance Leases and Lease Financing Obligations | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
Finance Leases and Lease Financing Obligations | Finance Leases and Lease Financing Obligations Finance Leases and Lease Financing Obligations The Company enters into finance lease arrangements to obtain hard drives and related equipment for its data center operations. The term of these agreements primarily range from two to four years and certain of these arrangements have optional renewals to extend the term of the lease generally at a fixed price. Contingent rental payments are generally not included in the Company’s finance lease agreements. Finance leases are generally secured by the underlying leased equipment. The Company's finance leases have original lease periods expiring between 2024 and 2027. Finance leases are included in property and equipment, net on the Company’s condensed consolidated balance sheets. A s of September 30, 2024, the weighted average remaining lease term for finance lease and lease financing obligation agreements was 1.8 years and the weighted average discount rate for finance leases was 11.3%. As of December 31, 2023, the weighted average remaining lease term for finance lease and lease financing obligation agreements was 1.7 years and the weighted average discount rate for finance leases was approximately 11.0%. The following table presents information regarding assets acquired through finance lease and lease financing obligation agreements, which are related to sale-leaseback agreements (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Depreciation expense |  | $ | 3,775 |  |  | $ | 3,932 |  |  | $ | 11,831 |  |  | $ | 11,157 |
Total finance lease costs |  | $ | 3,704 |  |  | $ | 4,390 |  |  | $ | 11,601 |  |  | $ | 12,547 |
Total interest expense included in finance lease costs |  | $ | 596 |  |  | $ | 718 |  |  | $ | 1,770 |  |  | $ | 2,170 |
Total lease financing obligation costs |  | $ | 820 |  |  | $ | 325 |  |  | $ | 2,549 |  |  | $ | 1,003 |
Total interest expense included in lease financing obligation costs |  | $ | 154 |  |  | $ | 64 |  |  | $ | 549 |  |  | $ | 223 |
Cash paid on interest on finance lease and lease financing obligations |  | $ | 750 |  |  | $ | 783 |  |  | $ | 2,319 |  |  | $ | 2,393 |
Depreciation expense on assets acquired through the Company’s finance leases and lease financing obligations is included in cost of revenue in its condensed consolidated statements of operations and comprehensive loss. The future minimum commitments for these finance leases and lease financing obligations as of September 30, 2024 were as follows (in thousands):
Year Ending December 31, |  | Finance leases |  | Lease financing obligations |  | Total
Remainder of 2024 |  | $ | 5,068 |  |  | $ | 803 |  |  | $ | 5,871 |
2025 |  | 13,079 |  |  | 2,921 |  |  | 16,000 |
2026 |  | 7,145 |  |  | — |  |  | 7,145 |
2027 |  | 2,431 |  |  | — |  |  | 2,431 |
2028 |  | — |  |  | — |  |  | — |
Thereafter |  | — |  |  | — |  |  | — |
Total future minimum lease and financing commitments |  | 27,723 |  |  | 3,724 |  |  | 31,447 |
Less imputed interest |  | (2,710) |  |  | (336) |  |  | (3,046) |
Total finance lease and lease financing obligation liabilities |  | $ | 25,013 |  |  | $ | 3,388 |  |  | $ | 28,401 |

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- References No definition available. + Details
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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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