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Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Schedule of Impairments Losses Recognized on Leases

impairment losses related to its lease ROU assets for the year ended December 31, 2022:


(Dollars in thousands)		Consolidated Statements of Operations Line		Impairment Loss
Scottsdale, Arizona (1)		Acquisition costs and other underwriting expenses			681
Omaha, Nebraska (2)		Acquisition costs and other underwriting expenses			488
Cavan, Ireland (3)		Acquisition costs and other underwriting expenses			168
Total lease impairment				$	1,337

(1) Impairment was in connection with the sale of the Company's manufactured and dwelling homes business renewal rights.

(2) Impairment was in connection with the sale of the Company's Farm, Ranch & Stable renewal rights.

(3) Terminated lease due to employees in Ireland working remotely.

Components of Lease Expense

The components of lease expenses were as follows:


		Years Ended December 31,
(Dollars in thousands)		2024				2023				2022
Operating lease expenses		$	2,032			$	2,052			$	2,372
Short-term lease expenses			32				12				15
Sublease income (1)			(331	)			(331	)			(331	)
Total lease expenses		$	1,733			$	1,733			$	2,056

(1) In connection with the sale of the renewal rights related to the Company's manufactured and dwelling homes business in 2021, K2 is subleasing approximately one third of the Company's Scottsdale, Arizona office. The Company intends to exercise its early termination clause in the Scottsdale, Arizona lease and expects to receive $1.6 million in sublease payments between October 2021 through October 2026.

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:


		Years Ended December 31,
(Dollars in thousands)		2024				2023				2022
Cash paid for amounts included in the measurement of liabilities:
Operating leases		$	1,733			$	1,852			$	2,056
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		$	158			$	—			$	—

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets.


				December 31,
(Dollars in thousands)		Classification on the consolidated balance sheets		2024				2023
Assets:
Operating lease assets		Lease right of use assets		$	9,295			$	9,715

Liabilities:
Operating lease liabilities		Lease liabilities		$	10,371			$	12,733

Weighted-average remaining lease term
Operating leases				4.3 years				5.0 years

Weighted-average discount rate
Operating leases (1)					4.2	%			0.8	%

(1) Represents the Company’s incremental borrowing rate at the time the leases were contracted.

Future Minimum Lease Payments Under Non-cancelable Operating Leases

At December 31, 2024, future minimum lease payments under non-cancelable operating leases were as follows:


(Dollars in thousands)		Operating Leases (1)				Expected Sublease Income
2025		$	2,890			$	388
2026			1,700				342
2027			1,216				—
2028			1,225				—
2029			1,248				—
Thereafter			3,886				—
Total future minimum lease payments			12,165				730
Less: amount representing interest			1,794				—
Present value of minimum lease payments		$	10,371			$	730

(1)

Includes future minimum lease payments of $2.2 million on leases that have been impaired because the property is no longer in use.