Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases                

Effective January 1, 2021, the Company adopted ASC 842 Leases (“ASC 842”) using the modified retrospective approach. The Company elected the use of the package of practical expedients permitted under the transition guidance which allows the Company not to reassess whether a contract contains a lease, carry forward the historical lease classification, and not reassess initial direct lease costs. The Company also elected to apply the short-term measurement and recognition exemption in which the right-of-use (“ROU”) assets and lease liabilities are not recognized for short-term leases. Adoption of this standard resulted in recording of net operating lease ROU assets and corresponding operating lease liabilities of $13.2 million and $13.5 million, respectively. The standard did not materially affect the consolidated statements of income and had no impact on the consolidated statements of cash flows.

The following table summarizes the Company’s ROU assets and lease liabilities (in thousands):

		December 31,
	Location on the Consolidated Balance Sheets	2023		2022
ROU Assets	Other assets	$	22,085	$	17,770
Lease liabilities, current portion	Other current liabilities	5,744		6,509
Lease liabilities, long-term portion	Other long-term liabilities	19,475		13,897
Total lease liabilities		$	25,219	$	20,406

The components of lease cost related to the Company’s operating leases were as follows (in thousands):

	Year Ended December 31,
	2023		2022		2021
Operating lease expense	$	8,188	$	7,701	$	6,635
Variable lease expense	1,501		1,089		106
Short-term lease expense	86		327		—
Total lease expense	$	9,775	$	9,117	$	6,741

Future minimum operating lease payments as of December 31, 2023, are as follows (in thousands):

	Operating Leases
2024	$	4,855
2025	6,654
2026	3,042
2027	2,969
2028	2,983
Thereafter	14,316
Total lease payments	34,819
Less: Imputed lease interest	(9,600)
Total lease liabilities	$	25,219

Other information pertaining to operating leases consists of the following:

	Year Ended December 31,
	2023		2022		2021
Weighted average remaining lease-term	5.7 years		4.2 years		3.8 years
Weighted average discount rate	7.9	%	5.4	%	5.0	%

Supplemental cash flow and other information related to operating leases are as follows (in thousands):

	Year Ended December 31,
	2023		2022		2021
Operating cash flows from operating leases	$	7,911	$	5,380	$	6,644
Non cash investing activities:
Lease liabilities arising from obtaining right-of-use assets	$	10,562	$	12,558	$	17,363