Leases

12 Months Ended

Dec. 31, 2024

9. Leases

The Company leases facilities, and equipment under noncancelable leases that have been classified as operating leases for financial reporting purposes. These leases often include one or more options to renew and the lease term includes the renewal terms when it is reasonably certain that the Company will exercise the option. In general, for the Company’s material leases, the renewal options are not included in the calculation of its right-of-use assets and lease liabilities, as the Company does not believe that it is reasonably certain that these renewal options will be exercised. The Company’s lease agreements do not contain any material residual guarantees or material restrictive covenants.

All operating lease expenses are recognized on a straight-line basis over the lease term as a component of “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. Payments under the Company’s lease arrangements are primarily fixed. However, certain lease agreements contain variable costs, which are expensed as incurred and

not included in the calculation of the Company’s right-of-use assets and related liabilities for those leases. These costs typically include real estate taxes, common area maintenance and utilities for which the Company is obligated to pay under the terms of those leases.

During the years ended December 31, 2024, 2023, and 2022, the Company expensed approximately $18.0 million, $26.5 million and $29.7 million, respectively, of total operating lease costs, which includes $2.0 million, $4.8 million and $4.4 million of variable lease costs, respectively.

Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company’s right-of-use assets and lease liabilities for operating leases as of December 31, 2024 and 2023 were as follows:


	Classification	December 31,
(in thousands)		2024		2023
Assets
Operating lease right-of-use assets	Other assets	$	25,932	$	33,841
Liabilities
Current operating lease liabilities	Other accrued expenses		13,323		14,573
Noncurrent operating lease liabilities	Other long-term liabilities		24,648		33,967
Total lease liabilities		$	37,971	$	48,540

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. In determining its incremental borrowing rate, the Company reviewed the terms of its leases, its credit facilities, and other factors.

Information related to the Company’s right-of-use assets and related lease liabilities were as follows:


	Year Ended December 31,
(amounts in thousands)	2024			2023			2022
Cash paid for operating lease liabilities	$	18,518		$	25,527		$	22,561
Right-of-use assets obtained in exchange for new operating lease obligations		855			18,187			29,937
Weighted-average remaining lease term	3.5 years			3.8 years			4.3 years
Weighted-average discount rate		9.9	%		9.8	%		8.6	%

Maturities of lease liabilities as of December 31, 2024 were as follows:


(in thousands)
2025	$	16,328
2026		12,735
2027		6,914
2028		4,072
2029		3,351
Thereafter		1,883
Total lease payments		45,283
Less: imputed interest		(7,312	)
Present value of lease liabilities	$	37,971