Leases

9 Months Ended

Sep. 30, 2023

5. Leases

The Company primarily leases facilities for office space under non-cancelable operating leases for its U.S. and international locations. As of September 30, 2023, non-cancelable leases expire on various dates between 2023 and 2043, some of which include options to extend the leases for up to 20 years.

The components of lease expense recorded in the condensed consolidated statements of operations were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

	(In thousands)
Operating lease cost	$	5,311	$	1,809	$	8,798	$	6,037





Sublease income	—		(14)		—		(206)
Total net lease cost	$	5,311	$	1,795	$	8,798	$	5,831

Other supplemental information related to operating leases were as follows:


	Nine months ended September 30,
		2023		2022

		(In thousands)








Weighted average remaining lease term (in years)		19.33		2.28



Weighted average discount rate		8.73	%	4.61	%

Maturities of operating lease liabilities were as follows:


	As of September 30,
	2023


	(In thousands)

2023 (remaining)	$	5,029
2024	23,544
2025	22,904
2026	22,365
2027	22,119

Thereafter	401,269
Total lease payments	497,230
Less: imputed interest	(269,750)

Total lease obligations	227,480
Less: current obligations	(4,766)
Long-term lease obligations	$	222,714

New Corporate Headquarters

On August 1, 2023, the Company commenced a lease for a new corporate headquarters in Raleigh, North Carolina. The lease term will continue for a period of twenty (20) years (the “Initial Term”). The Company has the option to renew the Initial Term for two ten-year periods at a rental rate equal to 100% of the then-prevailing market

rental rate for comparable buildings in the Raleigh, North Carolina, market. The Company relocated its corporate headquarters to the leased property during the third quarter of 2023.

Upon commencement of the lease, the Company recognized right-of-use (“ROU”) assets of $156.0 million and operating lease liabilities of $223.1 million. The operating lease liabilities include $67.8 million of incentives provided by the landlord throughout development of the new corporate headquarters. Assets obtained through lease incentives are reported in property, plant and equipment, net, on the condensed consolidated balance sheets. Total lease payments over the Initial Term will be approximately $495.7 million. The Company also has recorded $2.5 million in security deposits and $1.0 million in escrow deposits to fund additional improvements. Deposits are reported as a component of other long-term assets on the Company’s condensed consolidated balance sheets.