Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

We lease certain office space, equipment and vehicles. These leases are either non-cancelable, cancellable only by the payment of penalties or cancellable upon notice provided. All lease payments are based on the lapse of time and certain leases are subject to annual escalations for increases in base rents. The Company's lease terms includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised.

Operating and Finance Leases

The Company's operating leases primarily include material leases of buildings (consisting primarily of office lease commitments) and equipment. These leases are classified as operating leases and are recognized as right-of-use assets and operating lease liabilities on the consolidated balance sheets.

The Company's finance leases primarily include equipment and vehicles in certain contracts with payment terms on the lease agreements that range between 30 and 50 months.

The following tables present our operating and finance leases as of December 31, 2023, and 2022:

(Amounts in thousands)	Balance Sheet Classification	December 31, 2023		December 31, 2022
Assets:
Operating lease assets	Operating lease, right-of-use assets	$	40,743	$	30,264
Finance lease assets	Property and equipment, net	19,543		18,580
Total lease assets		$	60,286	$	48,844
Liabilities:
Current:
Operating lease liabilities	Operating lease obligation, current portion	$	(9,016)	$	(6,949)
Finance lease liabilities	Finance lease obligation, current portion	(6,586)		(5,297)
Total current lease liabilities		$	(15,602)	$	(12,246)
Non-current:
Operating lease liabilities	Operating lease obligation, less current portion	$	(37,660)	$	(28,087)
Finance lease liabilities	Finance lease obligation, less current portion	(14,408)		(14,254)
Total non-current lease liabilities		$	(52,068)	$	(42,341)

The following tables present selected financial information for the year ended December 31, 2023, and 2022:

(Amounts in thousands)	December 31, 2023		December 31, 2022
Operating lease cost
Amortization of right-of-use assets	$	11,192	$	8,137
Short-term and variable lease cost	9		325
Finance lease cost:
Amortization of right-of-use assets	7,262		6,756
Interest on lease liabilities	1,464		1,247
Sublease income	(75)		–
Total lease cost	$	19,852	$	16,465

(Amounts in thousands)	December 31, 2023		December 31, 2022
Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows from operating leases	$	18,560	$	105
Operating cash flows from finance leases	1,462		-
Financing cash flows from finance leases	6,782		6,027
Right-of-use assets obtained in exchange for new operating leases	19,030		30,133
Right-of-use assets obtained in exchange for new finance leases	8,245		829

	December 31, 2023		December 31, 2022
Weighted average remaining lease term (in years):
Operating leases	5.28		5.62
Finance leases	2.73		3.28
Weighted average discount rates:
Operating leases	7.1	%	7.1	%
Finance leases	7.4	%	7.4	%

Future minimum commitments under leases for the succeeding years are as follows (in thousands):

(Amounts in thousands)
Year ending December 31,	Operating Lease		Finance Lease
2023	$	11,694	$	7,868
2024	10,999		7,529
2025	9,415		4,088
2026	8,318		941
2027	7,533		–
Thereafter	8,117		–
Total lease payments	$	56,076	$	20,426
Less: Amounts representing interest	$	(9,600)	$	(2,420)
Total lease liabilities	$	46,476	$	18,006

The future minimum commitments for finance leases are exclusive of the $3.0 million bargain purchase price associated with the $21.0 million total liability to finance leases as presented on the consolidated balance sheet.

Leases

Leases

We lease certain office space, equipment and vehicles. These leases are either non-cancelable, cancellable only by the payment of penalties or cancellable upon notice provided. All lease payments are based on the lapse of time and certain leases are subject to annual escalations for increases in base rents. The Company's lease terms includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised.

Operating and Finance Leases

The Company's operating leases primarily include material leases of buildings (consisting primarily of office lease commitments) and equipment. These leases are classified as operating leases and are recognized as right-of-use assets and operating lease liabilities on the consolidated balance sheets.

The Company's finance leases primarily include equipment and vehicles in certain contracts with payment terms on the lease agreements that range between 30 and 50 months.

The following tables present our operating and finance leases as of December 31, 2023, and 2022:

(Amounts in thousands)	Balance Sheet Classification	December 31, 2023		December 31, 2022
Assets:
Operating lease assets	Operating lease, right-of-use assets	$	40,743	$	30,264
Finance lease assets	Property and equipment, net	19,543		18,580
Total lease assets		$	60,286	$	48,844
Liabilities:
Current:
Operating lease liabilities	Operating lease obligation, current portion	$	(9,016)	$	(6,949)
Finance lease liabilities	Finance lease obligation, current portion	(6,586)		(5,297)
Total current lease liabilities		$	(15,602)	$	(12,246)
Non-current:
Operating lease liabilities	Operating lease obligation, less current portion	$	(37,660)	$	(28,087)
Finance lease liabilities	Finance lease obligation, less current portion	(14,408)		(14,254)
Total non-current lease liabilities		$	(52,068)	$	(42,341)

The following tables present selected financial information for the year ended December 31, 2023, and 2022:

(Amounts in thousands)	December 31, 2023		December 31, 2022
Operating lease cost
Amortization of right-of-use assets	$	11,192	$	8,137
Short-term and variable lease cost	9		325
Finance lease cost:
Amortization of right-of-use assets	7,262		6,756
Interest on lease liabilities	1,464		1,247
Sublease income	(75)		–
Total lease cost	$	19,852	$	16,465

(Amounts in thousands)	December 31, 2023		December 31, 2022
Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows from operating leases	$	18,560	$	105
Operating cash flows from finance leases	1,462		-
Financing cash flows from finance leases	6,782		6,027
Right-of-use assets obtained in exchange for new operating leases	19,030		30,133
Right-of-use assets obtained in exchange for new finance leases	8,245		829

	December 31, 2023		December 31, 2022
Weighted average remaining lease term (in years):
Operating leases	5.28		5.62
Finance leases	2.73		3.28
Weighted average discount rates:
Operating leases	7.1	%	7.1	%
Finance leases	7.4	%	7.4	%

Future minimum commitments under leases for the succeeding years are as follows (in thousands):

(Amounts in thousands)
Year ending December 31,	Operating Lease		Finance Lease
2023	$	11,694	$	7,868
2024	10,999		7,529
2025	9,415		4,088
2026	8,318		941
2027	7,533		–
Thereafter	8,117		–
Total lease payments	$	56,076	$	20,426
Less: Amounts representing interest	$	(9,600)	$	(2,420)
Total lease liabilities	$	46,476	$	18,006

The future minimum commitments for finance leases are exclusive of the $3.0 million bargain purchase price associated with the $21.0 million total liability to finance leases as presented on the consolidated balance sheet.