LEASES

12 Months Ended

Dec. 31, 2024

The Company has operating leases for corporate and sales offices and equipment. The leases have remaining lease terms of less than one year to nine years, some of which include options to extend for up to five years, and some of which include options to terminate the leases within one year. However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants.

The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred.

The components of lease expense were as follows:


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	30,890	$	33,721	$	33,248
Short-term lease cost	802		1,188		1,064
Variable lease cost	4,143		4,234		4,144
Less: Sublease income	(148)		(688)		(579)
Total lease cost	$	35,687	$	38,455	$	37,877

Supplemental cash flow information related to leases was as follows:


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	32,596	$	34,106	$	36,956

ROU assets obtained in exchange for lease obligations:
Operating leases	13,878		12,768		14,856

Supplemental consolidated balance sheet information related to leases was as follows:



	December 31,		December 31,
	2024		2023

Weighted average remaining lease term in years:
Operating leases	5.73		6.38

Weighted average discount rate:
Operating leases	8.58	%	8.63	%

As of December 31, 2024, maturities of lease liabilities were as follows:


	Operating Leases
Year Ending December 31:

2025	$	31,636
2026	29,061
2027	25,862
2028	22,505
2029	18,152
Thereafter	31,252
Total lease payments	158,468
Less imputed interest	(34,861)
Total	$	123,607

As of December 31, 2024, the Company had a $460 undiscounted lease payment relating to a real estate lease that has not yet commenced. The operating lease will commence in the first half of 2025 with a lease term of approximately 5.0 years.

The Company’s rental expense for the years ended December 31, 2024, 2023 and 2022 was $30,890, $33,721 and $33,248, respectively. Rent expense for the year ended December 31, 2024 consisted of $20,553 of amortization and $10,337 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2023 consisted of $22,369 of amortization and $11,352 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2022 consisted of $20,621 of amortization and impairment of ROU assets and $12,627 of lease expense for interest accretion on operating lease liabilities.