Leases

12 Months Ended

Dec. 31, 2024

5. Leases

The Company has entered into various operating lease agreements for office space and finance lease agreements for automobiles.

The Company primarily leases facilities for office space under non-cancelable operating leases for its U.S. and international locations. As of December 31, 2024, non-cancelable leases expire on various dates between 2025 and 2043, some of which include options to extend the leases for up to 20 years.

For the years ended December 31, 2024, 2023 and 2022, operating lease cost recorded in the consolidated statements of operations was $23.1 million, $15.7 million and $7.8 million, respectively.

During the years ended December 31, 2024, 2023 and 2022, short-term operating lease expense was $0.7 million, $0.6 million, and $0.6 million, respectively.

Operating lease assets are recorded net of accumulated amortization of $7.3 million and $20.3 million as of December 31, 2024 and 2023, respectively.

Other supplemental information related to operating leases were as follows:


	Year ended December 31,
		2024		2023		2022








Weighted average remaining lease term (in years)		18.29		19.30		2.12



Weighted average discount rate		8.76	%	8.76	%	4.58	%

Maturities of operating lease liabilities were as follows:


	As of December 31,
	2024


	(In thousands)


2025	$	20,968
2026	22,503
2027	22,909
2028	23,258
2029	23,673
Thereafter	357,016
Total lease payments	470,327
Less: imputed interest	(246,150)
Less: accrued lease incentive	(1,875)
Total lease obligations	222,302
Less: current obligations	(3,111)
Long-term lease obligations	$	219,191

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.

The Company evaluated the stated yield explicitly set forth in the lease, and determined it was not calculated in a manner as required by ASC 842. Therefore, the Company determined it appropriate to use its IBR as the discount rate for the lease. The IBR was estimated by determining the risk-free rate for a similar length security and applying a risk premium based on the Company’s estimated credit rating. Because the Company’s estimated credit rating was based on presumed unsecured credit, the rating was increased one level to estimate the yield on secured debt, consistent with ASC 842’s requirements. The estimated rate was 8.78%.

Upon commencement of the lease, the Company recognized ROU assets of $156.0 million and operating lease liabilities of $223.1 million, both of which do not include the two ten-year renewal options. 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 consolidated balance sheets. The Company also recorded $2.5 million in security deposits and $1.0 million in escrow deposits to fund additional improvements. As of December 31, 2024, there is no balance remaining on the escrow deposits to fund additional improvements. Deposits are reported as a component of other long-term assets on the Company’s consolidated balance sheets.