LEASES

9 Months Ended

Sep. 30, 2024

The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the right-of-use assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 7.3 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were not material for the three and nine months ended September 30, 2024 and 2023.

During the three and nine months ended September 30, 2024 and 2023, the components of lease cost were as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Income Statement Classification	2024		2023		2024		2023
Operating lease cost	Selling, general and administrative expenses	$	10,893	$	11,592	$	32,579	$	34,725
Variable lease cost	Selling, general and administrative expenses	2,913		2,905		7,981		9,941
Short-term lease cost	Selling, general and administrative expenses	881		998		2,787		4,609
Total lease cost		$	14,687	$	15,495	$	43,347	$	49,275

Supplemental cash flow information related to leases for the three and nine months ended September 30, 2024 and 2023 was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	11,683	$	12,383	$	34,308	$	37,628
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	837	$	3,815	$	11,823	$	10,843
Non-cash net increase due to lease modifications:
Operating lease right-of-use assets	$	5,103	$	1,312	$	11,342	$	7,203
Operating lease liabilities	$	5,245	$	1,276	$	11,376	$	7,416

Weighted average remaining lease term and discount rate as of September 30, 2024 and 2023 were as follows:


	As of September 30, 2024		As of September 30, 2023
Weighted average remaining lease term, in years:
Operating leases	4.6		5.0
Weighted average discount rate:
Operating leases	4.3	%	3.9	%

As of September 30, 2024, operating lease liabilities will mature as follows:


Year ending December 31,	Lease Payments
2024 (excluding nine months ended September 30, 2024)	$	11,098
2025	40,667
2026	34,216
2027	24,747
2028	20,533
Thereafter	21,728
Total lease payments	152,989
Less: imputed interest	(12,877)
Total	$	140,112

The Company had committed to payments of $3.6 million related to operating lease agreements that had not yet commenced as of September 30, 2024. These operating leases will commence on various dates during 2024 and 2025 with lease terms ranging from 3.0 to 5.1 years. The Company did not have any material finance lease agreements that had not yet commenced.