Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

7. Leases

The Company has operating leases for off-campus classroom and laboratory site locations, office space, office equipment, and optical fiber communication lines. These leases have terms that range from five months to 10 years and five months. At lease inception, we determine the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company has operating lease costs of $13,496, $10,666 and $9,723 for the years ended December 31, 2023, 2022 and 2021, respectively.

As of December 31, 2023, the Company had $23,758 of non-cancelable operating lease commitments for five off-campus classroom and laboratory sites and $192 for optical fiber communication lines that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 8.02 years, with a weighted-average discount rate of 3.88%. The cash paid for operating lease liabilities was $11,391 for the year ended December 31, 2023. As of December 31, 2023, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at December 31, 2023, by year and in the aggregate, are as follows:

Year Ending December 31,	Amount
2024	$	14,386
2025		14,598
2026		14,593
2027		14,004
2028		13,835
Thereafter		45,261
Total lease payments	$	116,677
Less interest		17,396
Present value of lease liabilities	$	99,281