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Leases
 12 Months Ended
Dec. 31, 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 leases). Our leases have remaining lease terms of one year to eight years, some of which may include options to extend the leases for up to an additional five years.
We subleased our Fullerton (CA), Jacksonville (FL) and Uxbridge (UK) facilities. The lease and sublease for Fullerton (CA) facility expired in April 2023, the lease and sublease for Uxbridge (UK) facility expired in October 2023, and the lease and sublease for Jacksonville (FL) facility expired at the end of July 2024.
As of December 31, 2024, assets recorded under finance and operating leases were approximately $0.8 million and $21.7 million respectively, and accumulated amortization associated with finance leases was $0.1 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 depreciation 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 utilized 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.
During the year ended December 31, 2023, we impaired two leases for the facilities we no longer occupied. The resulting impairment and early termination charges are included in our restructuring expenses for the year ended December 31, 2023. There is no impairment of leases in the year ended December 31, 2024.
The following tables present supplemental balance sheet information related to our financing and operating leases:
As of December 31, 2024As of December 31, 2023
In thousandsOperating LeasesFinance LeasesTotalOperating LeasesFinance LeasesTotal
Right-of-use Assets$21,678 $782 $22,460 $25,288 $129 $25,417 
Liabilities:
Short-term lease liabilities3,578 158 3,736 4,773 42 4,815 
Long-term lease liabilities20,235 625 20,860 23,687 4 23,691 
Total Lease Liabilities$23,813 $783 $24,596 $28,460 $46 $28,506 
For the years ended December 31, 2024 and 2023, the components of lease expense were as follows:
In thousandsYear Ended December 31, 2024Year Ended December 31, 2023
Operating lease cost$5,315 $5,526 
Finance lease cost
Amortization of right-of-use assets102 123 
Interest on lease liabilities31 7 
Total Finance lease cost133 130 
Variable lease cost1,875 2,068 
Sublease income(368)(834)
Total lease cost, net$6,955 $6,890 
Other information related to leases was as follows:
In thousandsYear Ended December 31, 2024Year Ended December 31, 2023
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$11,170 $12,525 
Operating cash flows from finance leases28 21 
Financing cash flows from finance leases124 160 
Weighted Average Remaining Lease term (in years)
Operating leases6.386.84
Finance leases4.531.04
Weighted Average Discount Rate
Operating leases5.74%5.65%
Finance leases7.77%7.76%
The maturities of the Company’s finance and operating lease liabilities as of December 31, 2024 are as follows:
In thousandsOperating LeasesFinance Leases
Year Ending December 31,
2025$4,777 $210 
20264,219 206 
20274,190 206 
20284,094 206 
20294,132 99 
2030 & Beyond7,264 — 
Total future minimum lease payments28,676 927 
Less: Imputed interest4,863 144 
Total lease liabilities$23,813 $783 
As of December 31, 2024, we have no new operating leases that have not yet commenced.
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 leases). Our leases have remaining lease terms of one year to eight years, some of which may include options to extend the leases for up to an additional five years.
We subleased our Fullerton (CA), Jacksonville (FL) and Uxbridge (UK) facilities. The lease and sublease for Fullerton (CA) facility expired in April 2023, the lease and sublease for Uxbridge (UK) facility expired in October 2023, and the lease and sublease for Jacksonville (FL) facility expired at the end of July 2024.
As of December 31, 2024, assets recorded under finance and operating leases were approximately $0.8 million and $21.7 million respectively, and accumulated amortization associated with finance leases was $0.1 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 depreciation 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 utilized 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.
During the year ended December 31, 2023, we impaired two leases for the facilities we no longer occupied. The resulting impairment and early termination charges are included in our restructuring expenses for the year ended December 31, 2023. There is no impairment of leases in the year ended December 31, 2024.
The following tables present supplemental balance sheet information related to our financing and operating leases:
As of December 31, 2024As of December 31, 2023
In thousandsOperating LeasesFinance LeasesTotalOperating LeasesFinance LeasesTotal
Right-of-use Assets$21,678 $782 $22,460 $25,288 $129 $25,417 
Liabilities:
Short-term lease liabilities3,578 158 3,736 4,773 42 4,815 
Long-term lease liabilities20,235 625 20,860 23,687 4 23,691 
Total Lease Liabilities$23,813 $783 $24,596 $28,460 $46 $28,506 
For the years ended December 31, 2024 and 2023, the components of lease expense were as follows:
In thousandsYear Ended December 31, 2024Year Ended December 31, 2023
Operating lease cost$5,315 $5,526 
Finance lease cost
Amortization of right-of-use assets102 123 
Interest on lease liabilities31 7 
Total Finance lease cost133 130 
Variable lease cost1,875 2,068 
Sublease income(368)(834)
Total lease cost, net$6,955 $6,890 
Other information related to leases was as follows:
In thousandsYear Ended December 31, 2024Year Ended December 31, 2023
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$11,170 $12,525 
Operating cash flows from finance leases28 21 
Financing cash flows from finance leases124 160 
Weighted Average Remaining Lease term (in years)
Operating leases6.386.84
Finance leases4.531.04
Weighted Average Discount Rate
Operating leases5.74%5.65%
Finance leases7.77%7.76%
The maturities of the Company’s finance and operating lease liabilities as of December 31, 2024 are as follows:
In thousandsOperating LeasesFinance Leases
Year Ending December 31,
2025$4,777 $210 
20264,219 206 
20274,190 206 
20284,094 206 
20294,132 99 
2030 & Beyond7,264 — 
Total future minimum lease payments28,676 927 
Less: Imputed interest4,863 144 
Total lease liabilities$23,813 $783 
As of December 31, 2024, we have no new operating leases that have not yet commenced.