Leases

3 Months Ended

Mar. 31, 2024

LEASES

The Company has various operating leases for office space, vehicles and office equipment that expire through 2032. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Below is a summary of the Company's operating right-of-use assets and operating lease liabilities (in thousands):


	March 31, 2024
	(unaudited)
Operating lease right-of-use assets	$	49,220

Operating lease liabilities, current	$	(10,122)
Operating lease liabilities, long-term	(48,009)
Total operating lease liabilities	$	(58,131)

Operating lease liabilities, current are included within accrued expenses and other short-term liabilities in the condensed consolidated balance sheet.

Some leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. Lease modifications result in remeasurement of the right-of-use assets and lease liabilities.

Some of the real estate leases contain variable lease payments, including payments based on a Consumer Price Index ("CPI"). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption. Additional payments based on the change in a CPI are recorded as a period expense when incurred.

The Company has deposit guarantees issued by a financial institution to secure various operating lease agreements in connection with its office space.

Minimum lease payments for the Company's right-of-use assets over the remaining lease periods as of March 31, 2024, are as follows (in thousands):


	March 31, 2024
	(unaudited)
2024	$	8,773
2025	11,357
2026	9,687
2027	9,576
2028	9,523
Thereafter	14,001
Total undiscounted lease payments	$	62,917

Less: Imputed interest	(4,786)
Present value of lease liabilities	$	58,131

As of March 31, 2024, the Company had an additional operating lease that had not yet commenced of $2,454. This operating lease will commence in the fourth quarter of 2024 with a lease term through 2028.

The weighted average remaining lease terms and discount rates for all operating leases were as follows as of March 31, 2024:


Remaining lease term and discount rate:
Weighted average remaining lease term (years)	6.13

Weighted average discount rate	2.88	%

Total operating lease cost for the three months ended March 31, 2024 and 2023 was $2,586 and $2,292, inclusive of sublease income of $430 and $463, respectively.