Leases

6 Months Ended

Jun. 30, 2024

12. Leases

The Company has operating leases for corporate offices with initial lease terms ranging from one year to 15 years. Certain leases contain options to extend the initial term at the Company’s discretion. The Company accounts for the option to extend when it is reasonably certain of being exercised. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The Company also has operating and finance leases for equipment with initial lease terms ranging from one-year to 5 years.

The following table presents the components of operating lease expense for the three and six months ended June 30, 2024 and 2023:


		Three Months Ended June 30,				Six Months Ended June 30,
Lease cost:	Classification	2024		2023		2024		2023
		(In thousands)
Operating lease cost - office space	Occupancy	$	2,750	$	2,882	$	5,504	$	5,993
Operating lease cost - equipment	Technology and communications		98		—		195		—
Variable lease costs	Occupancy		882		347		1,469		398
Total operating lease cost		$	3,730	$	3,229	$	7,168	$	6,391

Finance lease expense was $0.1 million for each of the three and six months ended June 30, 2024.

The Company determines whether an arrangement is, or includes, a lease at contract inception. Operating lease right-of-use assets and liabilities are recognized at commencement date and are initially measured based on the present value of lease payments over the defined lease term. As the Company's leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The weighted average remaining lease term and weighted average discount rate are as follows:


	As of
Lease Term and Discount Rate	June 30, 2024			December 31, 2023
Weighted average remaining lease term (in years) - operating leases		9.2			9.6
Weighted average discount rate - operating leases		6.0	%		6.0	%
Weighted average remaining lease term (in years) - finance leases		1.3			1.8
Weighted average discount rate - finance leases		7.2	%		7.2	%

The following table presents the maturity of lease liabilities as of June 30, 2024:


	Operating Leases		Finance Leases
	(In thousands)
Remainder of 2024	$	6,548	$	59
2025		12,351		88
2026		11,765		—
2027		9,010		—
2028		8,615		—
2029 and thereafter		51,306		—
Total lease payments		99,595		147
Less: imputed interest		23,514		7
Present value of lease liabilities	$	76,081	$	140