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Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases Leases
The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. Under ASC 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset. See Note 2 for more information on the Company’s accounting policies for leases.
The Company leases office facilities and vehicles under operating lease agreements that have initial terms ranging from 1 to 9 years. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 10 years. In addition, certain leases contain termination options, where the rights to terminate
are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants or residual value guarantees. The Company also leases office equipment under a finance lease agreement with a term of 4 years. The Company’s finance lease was not material to the consolidated financial statements as of September 30, 2021.
Supplemental balance sheet information related to the Company’s operating leases is as follows:
LeasesBalance Sheet ClassificationSeptember 30, 2021
(in thousands)
Assets
Operating lease assetsOther assets$22,892 
Liabilities
Operating lease liabilities - currentAccrued liabilities$5,367 
Operating lease liabilities - non-currentOther liabilities21,442 
Total operating lease liabilities$26,809 
The weighted-average remaining term of the Company’s operating leases was 6.0 years as of September 30, 2021. The weighted-average discount rate used to measure the present value of the operating lease liabilities was 3.5% as of September 30, 2021.
The components of lease expense were as follows:
Three Months Ended
September 30, 2021		Nine Months Ended
September 30, 2021
(in thousands)
Operating lease cost$1,541 $4,424 
Short-term lease cost83 187 
Variable lease cost508 1,388 
Total lease expense$2,132 $5,999 
Operating lease cost is recognized on a straight-line basis over the lease term. The Company leases certain office facilities with a related party, including the office space in Eau Claire, Wisconsin. Operating lease cost with related parties was $0.3 million and $0.8 million for the three and nine months ended September 30, 2021, respectively.
Total lease expense, including the Company’s share of the lessors’ operating expenses, was $1.2 million and $3.7 million for the three and nine months ended September 30, 2020, respectively. Previously reported total lease expense for the three and nine months ended September 30, 2020 have been revised. See Note 1 for more information. Lease expense with related parties, including the Company’s share of the lessors’ operating expenses, was $0.3 million and $0.8 million for the three and nine months ended September 30, 2020, respectively.
For the nine months ended September 30, 2021, operating cash flows included $4.3 million of cash paid for operating lease liabilities.
Maturities of the Company’s operating lease liabilities as of September 30, 2021 were as follows:
Operating Leases
(in thousands)
Years ending December 31:
2021 (remaining three months)
$1,599 
2022
6,077 
2023
5,681 
2024
4,605 
2025
2,519 
Thereafter9,482 
Total lease payments29,963 
Less: imputed interest3,154 
Total present value of lease liabilities$26,809 
Leases Leases
The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. Under ASC 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset. See Note 2 for more information on the Company’s accounting policies for leases.
The Company leases office facilities and vehicles under operating lease agreements that have initial terms ranging from 1 to 9 years. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 10 years. In addition, certain leases contain termination options, where the rights to terminate
are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants or residual value guarantees. The Company also leases office equipment under a finance lease agreement with a term of 4 years. The Company’s finance lease was not material to the consolidated financial statements as of September 30, 2021.
Supplemental balance sheet information related to the Company’s operating leases is as follows:
LeasesBalance Sheet ClassificationSeptember 30, 2021
(in thousands)
Assets
Operating lease assetsOther assets$22,892 
Liabilities
Operating lease liabilities - currentAccrued liabilities$5,367 
Operating lease liabilities - non-currentOther liabilities21,442 
Total operating lease liabilities$26,809 
The weighted-average remaining term of the Company’s operating leases was 6.0 years as of September 30, 2021. The weighted-average discount rate used to measure the present value of the operating lease liabilities was 3.5% as of September 30, 2021.
The components of lease expense were as follows:
Three Months Ended
September 30, 2021		Nine Months Ended
September 30, 2021
(in thousands)
Operating lease cost$1,541 $4,424 
Short-term lease cost83 187 
Variable lease cost508 1,388 
Total lease expense$2,132 $5,999 
Operating lease cost is recognized on a straight-line basis over the lease term. The Company leases certain office facilities with a related party, including the office space in Eau Claire, Wisconsin. Operating lease cost with related parties was $0.3 million and $0.8 million for the three and nine months ended September 30, 2021, respectively.
Total lease expense, including the Company’s share of the lessors’ operating expenses, was $1.2 million and $3.7 million for the three and nine months ended September 30, 2020, respectively. Previously reported total lease expense for the three and nine months ended September 30, 2020 have been revised. See Note 1 for more information. Lease expense with related parties, including the Company’s share of the lessors’ operating expenses, was $0.3 million and $0.8 million for the three and nine months ended September 30, 2020, respectively.
For the nine months ended September 30, 2021, operating cash flows included $4.3 million of cash paid for operating lease liabilities.
Maturities of the Company’s operating lease liabilities as of September 30, 2021 were as follows:
Operating Leases
(in thousands)
Years ending December 31:
2021 (remaining three months)
$1,599 
2022
6,077 
2023
5,681 
2024
4,605 
2025
2,519 
Thereafter9,482 
Total lease payments29,963 
Less: imputed interest3,154 
Total present value of lease liabilities$26,809