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LEASES | 12 Months Ended
--- | ---
Dec. 31, 2023
Leases [Abstract] |
LEASES | LEASES The Company has various lease agreements related to office space, warehouses, vehicles, and office equipment. The leases expire at various dates through 2037, which are primarily accounted for as operating leases. In November 2020, the Company entered into a lease agreement to rent an office building in Salt Lake City, UT, that will be used as the Company's new corporate headquarters, consisting of approximately 94,000 square feet of space that expires in 2037. In accordance with ASC 840, for build-to-suit lease arrangements where the Company is involved in the construction of structural improvements prior to the commencement of the lease or take some level of construction risk, the Company was considered the owner of the assets and land during the construction period. Accordingly, upon commencement of construction activities, the Company recorded a construction in progress asset and a corresponding financing liability. On January 1, 2022, the Company adopted ASC 842 and determined it did not control the use of the identified asset under construction and therefore derecognized the build-to-suit asset and related liabilities. Since the Company did not control the underlying asset being constructed, the Company did not recognize an operating ROU asset and lease liability. During the construction period and prior to the commencement date, the Company incurred lease payments and costs relating to the construction and design of the underlying asset and recognized such costs as prepayments and noncash lease payments in accordance with ASC 842. On December 8, 2023, the Company obtained control to use the underlying asset being constructed which resulted in the lease commencement and recognition of an additional operating ROU asset and lease liability of $37.7 million and $21.8 million, respectively, with the difference between the ROU asset and the lease liability being primarily due to the funding of $14.9 million for lessor owned leasehold improvements and $1.0 million of prepaid rent expense. The following table presents the components of lease costs (in thousands):
|  | Year-ended December 31,
|  | 2023 |  | 2022
Operating lease costs |  | $ | 6,293 |  |  | $ | 6,476 |
Variable lease costs |  | 1,311 |  |  | 1,561 |
The following table presents lease terms and discount rates:
|  | Year-ended December 31,
|  | 2023 |  | 2022
Weighted average remaining lease term |  | 10.67 |  | 4.54
Weighted average discount rate |  | 7.83 | % |  | 4.28 | %
At December 31, 2023, future lease payments (receipts) under operating leases were as follows (in thousands):
| Operating Lease Liabilities |  | Operating Sublease
2024 | $ | 5,865 |  |  | $ | (1,979) |
2025 | 5,465 |  |  | (2,029) |
2026 | 4,411 |  |  | (1,035) |
2027 | 3,461 |  |  | — |
2028 | 3,419 |  |  | — |
Thereafter | 28,323 |  |  | — |
Total lease payments (receipts) | 50,944 |  |  | (5,043) |
Less: Effect of discounting to net present value | (18,194) |  |  |
Present value of lease liabilities | $ | 32,750 |  |  |
The following table presents supplemental cash flow information (in thousands):
| Year-ended December 31,
| 2023 |  | 2022
Cash payments used in operating cash flows from lease arrangements | $ | 6,112 |  |  | $ | 6,313 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 40,589 |  |  | $ | 21,525 |
Derecognition of right-of-use assets due to reassessment of lease term | $ | (33) |  |  | $ | (596) |
LEASES | LEASES The Company has various lease agreements related to office space, warehouses, vehicles, and office equipment. The leases expire at various dates through 2037, which are primarily accounted for as operating leases. In November 2020, the Company entered into a lease agreement to rent an office building in Salt Lake City, UT, that will be used as the Company's new corporate headquarters, consisting of approximately 94,000 square feet of space that expires in 2037. In accordance with ASC 840, for build-to-suit lease arrangements where the Company is involved in the construction of structural improvements prior to the commencement of the lease or take some level of construction risk, the Company was considered the owner of the assets and land during the construction period. Accordingly, upon commencement of construction activities, the Company recorded a construction in progress asset and a corresponding financing liability. On January 1, 2022, the Company adopted ASC 842 and determined it did not control the use of the identified asset under construction and therefore derecognized the build-to-suit asset and related liabilities. Since the Company did not control the underlying asset being constructed, the Company did not recognize an operating ROU asset and lease liability. During the construction period and prior to the commencement date, the Company incurred lease payments and costs relating to the construction and design of the underlying asset and recognized such costs as prepayments and noncash lease payments in accordance with ASC 842. On December 8, 2023, the Company obtained control to use the underlying asset being constructed which resulted in the lease commencement and recognition of an additional operating ROU asset and lease liability of $37.7 million and $21.8 million, respectively, with the difference between the ROU asset and the lease liability being primarily due to the funding of $14.9 million for lessor owned leasehold improvements and $1.0 million of prepaid rent expense. The following table presents the components of lease costs (in thousands):
|  | Year-ended December 31,
|  | 2023 |  | 2022
Operating lease costs |  | $ | 6,293 |  |  | $ | 6,476 |
Variable lease costs |  | 1,311 |  |  | 1,561 |
The following table presents lease terms and discount rates:
|  | Year-ended December 31,
|  | 2023 |  | 2022
Weighted average remaining lease term |  | 10.67 |  | 4.54
Weighted average discount rate |  | 7.83 | % |  | 4.28 | %
At December 31, 2023, future lease payments (receipts) under operating leases were as follows (in thousands):
| Operating Lease Liabilities |  | Operating Sublease
2024 | $ | 5,865 |  |  | $ | (1,979) |
2025 | 5,465 |  |  | (2,029) |
2026 | 4,411 |  |  | (1,035) |
2027 | 3,461 |  |  | — |
2028 | 3,419 |  |  | — |
Thereafter | 28,323 |  |  | — |
Total lease payments (receipts) | 50,944 |  |  | (5,043) |
Less: Effect of discounting to net present value | (18,194) |  |  |
Present value of lease liabilities | $ | 32,750 |  |  |
The following table presents supplemental cash flow information (in thousands):
| Year-ended December 31,
| 2023 |  | 2022
Cash payments used in operating cash flows from lease arrangements | $ | 6,112 |  |  | $ | 6,313 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 40,589 |  |  | $ | 21,525 |
Derecognition of right-of-use assets due to reassessment of lease term | $ | (33) |  |  | $ | (596) |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-30/tableOfContent + Details
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