Leases

9 Months Ended

Sep. 30, 2024

Note 6 – Leases

The Company determines if a contract is or contains a lease at inception. The Company leases certain facilities, vehicles and other equipment. The Company’s leases primarily consist of operating leases which expire at various dates through 2036. Variable lease payments are generally expensed as incurred and primarily include certain index-based changes in rent and certain non-lease components, such as maintenance and other services provided by the lessor.

The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Finance lease costs:
Amortization of right-of-use assets (included in depreciation expense)	$	—	$	—	$	—	$	48
Interest on lease liabilities		3		5		10		16
Operating lease costs		5,583		4,891		16,648		13,797
Short-term lease costs		138		183		566		473
Variable lease costs		979		442		1,453		1,334
Total lease costs	$	6,703	$	5,521	$	18,677	$	15,668

A summary of cash flow information related to leases follows:


	Nine Months Ended September 30,
(in thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	16,296	$	13,196
Operating cash flows used for finance leases		10		16
Financing cash flows used for finance leases		135		129
Right-of-use assets obtained in exchange for new operating lease liabilities		4,145		39,849

A summary of other information about the Company's leases follows:


	September 30,			December 31,
(dollars in thousands)	2024			2023
Operating lease right-of-use assets	$	122,117		$	130,830
Finance lease liabilities, current (included in current installments of long-term debt)	$	188		$	181
Finance lease liabilities, noncurrent (included in long-term debt)	$	32		$	174
Operating lease liabilities, current (included in accrued liabilities)	$	17,169		$	15,486
Operating lease liabilities, noncurrent	$	114,181		$	123,385
Weighted average remaining lease term – finance leases	1.2 years			1.9 years
Weighted average remaining lease term – operating leases	9.0 years			9.7 years
Weighted average discount rate – finance leases		4.8	%		4.8	%
Weighted average discount rate – operating leases		4.6	%		4.5	%

A summary of the Company's future annual minimum lease payments as of September 30, 2024 follows (in thousands):


Year ending December 31,	Operating Leases			Finance Leases
Remaining three months of 2024	$	5,741		$	48
2025		22,071			178
2026		17,756			—
2027		16,098			—
2028		15,175			—
2029 and thereafter		84,668			—
Total minimum lease payments		161,509			226
Less: imputed interest		(30,159	)		(6	)
Total present value of lease liabilities	$	131,350		$	220