Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Leases

The Company and its subsidiaries lease office and manufacturing facilities, computer equipment and software under various operating arrangements. Certain of the leases are subject to escalation clauses and renewal periods. The Company and its subsidiaries recognize lease expense, including predetermined fixed escalations, on a straight-line basis over the initial term of the lease including reasonably assured renewal periods from the time that the Company and its subsidiaries control the leased property. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain of our subsidiaries have leases that contain both fixed rent costs and variable rent costs based on achievement of certain operating metrics. The variable lease expense was not a material component of our total lease expense for the years ending December 31, 2024, 2023 or 2022.

The maturities of lease liabilities at December 31, 2024 having an initial or remaining non-cancelable term of one year or more are as follows (in thousands):


	Operating		Finance		Total
2025	$	53,048	$	719	$	53,767
2026	53,868		719		54,587
2027	45,721		7,040		52,761
2028	35,389		—		35,389
2029	26,003		—		26,003
Thereafter	70,674		—		70,674
Total undiscounted lease payments	$	284,703	$	8,478	$	293,181
Less: Interest	67,946		1,570		69,516
Present value of lease liabilities	$	216,757	$	6,908	$	223,665

The Company’s rent expense for the fiscal years ended December 31, 2024, 2023 and 2022 totaled $53.9 million, $50.3 million and $41.9 million, respectively. The Company entered into a finance lease during the year ended December 31, 2024. The amortization and interest related to this lease was not material in 2024.

The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and discount rate used to present value the minimum lease payments. The Company's lease agreements often include one or more options to renew at the company's discretion. In general, it is not reasonably certain that lease renewals will be exercised at lease commencement and therefore lease renewals are not included in the lease term. As the discount rate is rarely determinable, the Company utilizes the incremental borrowing rate of the subsidiary entering into the lease arrangement, on a collateralized basis, over a similar term as adjusted for any country specific risk.

The weighted average remaining lease terms and discount rates for all of our leases were as follows:


Lease Term and Discount Rate	December 31, 2024		December 31, 2023
Weighted-average remaining lease term (years)
Operating Leases	6.05		6.77
Finance Leases	2.33		N/a
Weighted-average discount rate
Operating Leases	8.90	%	8.5	%
Finance Leases	9.90	%	N/a

Supplemental balance sheet information related to leases was as follows (in thousands):


	Line Item in the Company’s Consolidated Balance Sheet	December 31, 2024		December 31, 2023

Assets:
Operating lease right-of-use assets	Other non-current assets	$	191,639	$	177,323
Finance lease right-of-use assets	Other non-current assets	6,882		—
		$	198,521	$	177,323
Liabilities:
Operating lease liabilities - current	Other current liabilities	$	38,180	$	28,997
Operating lease liabilities - non-current	Other non-current liabilities	178,577		173,558
Finance lease liabilities - current	Other current liabilities	42		—
Finance lease liabilities - non-current	Other non-current liabilities	6,866		—
		$	223,665	$	202,555

Supplemental cash flow information related to leases was as follows (in thousands):


	Year ended December 31, 2024		Year ended December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	47,688	$	39,806
Operating cash flows from finance leases	447		—
Financing cash flows from finance leases	21		—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	27,477	$	61,560
Finance leases	6,883		—

Legal Proceedings

In the normal course of business, the Company and its subsidiaries are involved in various claims and legal proceedings. While the ultimate resolution of these matters has yet to be determined, the Company does not believe that any unfavorable outcomes will have a material adverse effect on the Company’s consolidated financial position or results of operations.