Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements.

The Company had performed an evaluation of its contracts with suppliers in accordance with Topic 842, Leases, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space.

Supplemental balance sheet information

	As of
	September 30, 2022		December 31, 2021
Operating Lease
Operating lease right-of-use assets	$	61,966	$	76,692
Operating lease liabilities - Current	$	16,740	$	18,487
Operating lease liabilities - Non-current	54,174		68,506
Total operating lease liabilities	$	70,914	$	86,993
Finance Lease
Property and equipment, gross	$	2,416	$	2,685
Accumulated depreciation	(1,993)		(2,339)
Property and equipment, net	$	423	$	346
Finance lease liabilities - Current	$	140	$	141
Finance lease liabilities - Non-current	300		229
Total finance lease liabilities	$	440	$	370

Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets.

The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows:

Lease cost	Three months ended September 30,				Nine months ended September 30,
Finance lease:	2022		2021		2022		2021
Amortization of right-of-use assets	$	28	$	47	$	116	$	149
Interest on lease liabilities	14		10		42		49
	42		57		158		198
Operating lease(a)	5,360		6,380		17,365		20,012
Variable lease costs	1,298		1,779		3,827		5,672
Total lease cost	$	6,700	$	8,216	$	21,350	$	25,882

(a) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:

	Nine months ended September 30,
	2022			2021
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	17,831		$	19,654
Operating cash outflows for finance leases	$	42		$	49
Financing cash outflows for finance leases	$	108		$	157
Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,519		$	4,647
Right-of-use assets obtained in exchange for new finance lease liabilities	$	218		$	79
Weighted-average remaining lease term (in years)
Finance lease	2.7 years			1.9 years
Operating lease	5.5 years			5.9 years
Weighted-average discount rate
Finance lease	14.4		%	14.3		%
Operating lease	7.0		%	7.3		%

The Company modified certain of its operating leases, resulting in an increase of its lease liabilities by $209 and a decrease of its lease liabilities by $1,022 during the nine months ended September 30, 2022 and 2021, respectively, with a corresponding adjustment to ROU assets.

As of September 30, 2022 and December 31, 2021, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company.

Maturities of lease liabilities as of September 30, 2022 were as follows:

	Operating Leases		Finance Leases
2022 (October 1 - December 31)	$	5,347	$	46
2023	20,723		197
2024	17,322		129
2025	11,153		84
2026	9,030		59
2027 and thereafter	24,087		50
Total lease payments	87,662		565
Less: Imputed interest	16,748		125
Present value of lease liabilities	$	70,914	$	440

Maturities of lease liabilities as of December 31, 2021 were as follows:

	Operating Leases		Finance Leases
2022	$	24,020	$	185
2023	22,666		147
2024	17,745		72
2025	10,741		34
2026	8,395		17
2027 and thereafter	25,198		—
Total lease payments	108,765		455
Less: Imputed interest	21,772		85
Present value of lease liabilities	$	86,993	$	370

Leases

Leases

The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements.

The Company had performed an evaluation of its contracts with suppliers in accordance with Topic 842, Leases, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space.

Supplemental balance sheet information

	As of
	September 30, 2022		December 31, 2021
Operating Lease
Operating lease right-of-use assets	$	61,966	$	76,692
Operating lease liabilities - Current	$	16,740	$	18,487
Operating lease liabilities - Non-current	54,174		68,506
Total operating lease liabilities	$	70,914	$	86,993
Finance Lease
Property and equipment, gross	$	2,416	$	2,685
Accumulated depreciation	(1,993)		(2,339)
Property and equipment, net	$	423	$	346
Finance lease liabilities - Current	$	140	$	141
Finance lease liabilities - Non-current	300		229
Total finance lease liabilities	$	440	$	370

Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets.

The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows:

Lease cost	Three months ended September 30,				Nine months ended September 30,
Finance lease:	2022		2021		2022		2021
Amortization of right-of-use assets	$	28	$	47	$	116	$	149
Interest on lease liabilities	14		10		42		49
	42		57		158		198
Operating lease(a)	5,360		6,380		17,365		20,012
Variable lease costs	1,298		1,779		3,827		5,672
Total lease cost	$	6,700	$	8,216	$	21,350	$	25,882

(a) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:

	Nine months ended September 30,
	2022			2021
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	17,831		$	19,654
Operating cash outflows for finance leases	$	42		$	49
Financing cash outflows for finance leases	$	108		$	157
Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,519		$	4,647
Right-of-use assets obtained in exchange for new finance lease liabilities	$	218		$	79
Weighted-average remaining lease term (in years)
Finance lease	2.7 years			1.9 years
Operating lease	5.5 years			5.9 years
Weighted-average discount rate
Finance lease	14.4		%	14.3		%
Operating lease	7.0		%	7.3		%

The Company modified certain of its operating leases, resulting in an increase of its lease liabilities by $209 and a decrease of its lease liabilities by $1,022 during the nine months ended September 30, 2022 and 2021, respectively, with a corresponding adjustment to ROU assets.

As of September 30, 2022 and December 31, 2021, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company.

Maturities of lease liabilities as of September 30, 2022 were as follows:

	Operating Leases		Finance Leases
2022 (October 1 - December 31)	$	5,347	$	46
2023	20,723		197
2024	17,322		129
2025	11,153		84
2026	9,030		59
2027 and thereafter	24,087		50
Total lease payments	87,662		565
Less: Imputed interest	16,748		125
Present value of lease liabilities	$	70,914	$	440

Maturities of lease liabilities as of December 31, 2021 were as follows:

	Operating Leases		Finance Leases
2022	$	24,020	$	185
2023	22,666		147
2024	17,745		72
2025	10,741		34
2026	8,395		17
2027 and thereafter	25,198		—
Total lease payments	108,765		455
Less: Imputed interest	21,772		85
Present value of lease liabilities	$	86,993	$	370