Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Leases

We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term lease). Our leases have remaining lease terms of one to eight years, some of which may include options to extend the leases for up to an additional five years.

As of September 30, 2024, assets recorded under finance and operating leases were approximately $0.5 million and $22.4 million, respectively, and accumulated amortization associated with finance leases was $0.2 million. As of December 31, 2023, assets recorded under finance and operating leases were approximately $0.1 million and $25.3 million, respectively, and accumulated amortization associated with finance leases was $0.1 million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is not readily determinable, we utilize our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.

There was no impairment of leases during the three and nine months ended September 30, 2024 and 2023.

The following table presents supplemental balance sheet information related to our financing and operating leases:

In thousands	As of September 30, 2024						As of December 31, 2023
	Operating Leases		Finance Leases		Total		Operating Leases		Finance Leases		Total
Right-of-use Assets	$	22,392	$	534	$	22,926	$	25,288	$	129	$	25,417
Liabilities
Current portion of lease liabilities	3,665		97		3,762		4,773		42		4,815
Long-term lease liabilities	21,114		355		21,469		23,687		4		23,691
Total Lease Liabilities	$	24,779	$	452	$	25,231	$	28,460	$	46	$	28,506

For the three and nine months ended September 30, 2024 and 2023, the components of lease expense were as follows:

	Three months ended September 30,				Nine months ended September 30,
In thousands	2024		2023		2024		2023
Operating lease cost	$	1,314	$	1,338	$	3,996	$	4,160
Finance lease cost:
Amortization of right-of-use assets	30		35		61		115
Interest on lease liabilities	9		2		17		6
Total Finance lease cost	39		37		78		121
Variable lease cost	412		537		1,443		1,525
Sublease income	(53)		(177)		(368)		(676)
Total lease cost, net	$	1,712	$	1,735	$	5,149	$	5,130

Other information related to leases was as follows:

In thousands	Nine Months Ended September 30, 2024			Nine Months Ended September 30, 2023
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,464		$	9,525
Operating cash flows from finance leases	15			6
Financing cash flows from finance leases	79			144
Weighted Average Remaining Lease term
Operating leases	6.6			5.6
Finance leases	4.5			1.3
Weighted Average Discount Rate
Operating leases	5.73		%	3.56		%
Finance leases	8.15		%	7.04		%

The maturities of the Company’s finance and operating lease liabilities as of September 30, 2024 are as follows:

In thousands	Operating Leases		Finance Leases
Year Ending December 31,
Remainder of 2024	$	1,398	$	35
2025	4,656		120
2026	4,232		117
2027	4,198		117
2028	4,094		117
2029 and beyond	11,397		32
Total future minimum lease payments	29,975		538
Less: imputed interest	5,196		86
Total lease liabilities	$	24,779	$	452

Leases

Leases

We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term lease). Our leases have remaining lease terms of one to eight years, some of which may include options to extend the leases for up to an additional five years.

As of September 30, 2024, assets recorded under finance and operating leases were approximately $0.5 million and $22.4 million, respectively, and accumulated amortization associated with finance leases was $0.2 million. As of December 31, 2023, assets recorded under finance and operating leases were approximately $0.1 million and $25.3 million, respectively, and accumulated amortization associated with finance leases was $0.1 million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is not readily determinable, we utilize our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.

There was no impairment of leases during the three and nine months ended September 30, 2024 and 2023.

The following table presents supplemental balance sheet information related to our financing and operating leases:

In thousands	As of September 30, 2024						As of December 31, 2023
	Operating Leases		Finance Leases		Total		Operating Leases		Finance Leases		Total
Right-of-use Assets	$	22,392	$	534	$	22,926	$	25,288	$	129	$	25,417
Liabilities
Current portion of lease liabilities	3,665		97		3,762		4,773		42		4,815
Long-term lease liabilities	21,114		355		21,469		23,687		4		23,691
Total Lease Liabilities	$	24,779	$	452	$	25,231	$	28,460	$	46	$	28,506

For the three and nine months ended September 30, 2024 and 2023, the components of lease expense were as follows:

	Three months ended September 30,				Nine months ended September 30,
In thousands	2024		2023		2024		2023
Operating lease cost	$	1,314	$	1,338	$	3,996	$	4,160
Finance lease cost:
Amortization of right-of-use assets	30		35		61		115
Interest on lease liabilities	9		2		17		6
Total Finance lease cost	39		37		78		121
Variable lease cost	412		537		1,443		1,525
Sublease income	(53)		(177)		(368)		(676)
Total lease cost, net	$	1,712	$	1,735	$	5,149	$	5,130

Other information related to leases was as follows:

In thousands	Nine Months Ended September 30, 2024			Nine Months Ended September 30, 2023
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,464		$	9,525
Operating cash flows from finance leases	15			6
Financing cash flows from finance leases	79			144
Weighted Average Remaining Lease term
Operating leases	6.6			5.6
Finance leases	4.5			1.3
Weighted Average Discount Rate
Operating leases	5.73		%	3.56		%
Finance leases	8.15		%	7.04		%

The maturities of the Company’s finance and operating lease liabilities as of September 30, 2024 are as follows:

In thousands	Operating Leases		Finance Leases
Year Ending December 31,
Remainder of 2024	$	1,398	$	35
2025	4,656		120
2026	4,232		117
2027	4,198		117
2028	4,094		117
2029 and beyond	11,397		32
Total future minimum lease payments	29,975		538
Less: imputed interest	5,196		86
Total lease liabilities	$	24,779	$	452