Lessee Leases

3 Months Ended

Mar. 31, 2024

The Company has operating leases for office buildings, data centers, office equipment, and vehicles. The Company’s leases have initial terms of one to twelve years. As of March 31, 2024, the Company did not have any additional material operating leases that were entered into, but not yet commenced.

The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Condensed Consolidated Balance Sheets was as follows:


	March 31, 2024

	(In thousands)
Remaining nine months of 2024	$	9,688
2025	11,858
2026	10,996
2027	9,057
2028	7,749
Thereafter	1,865
Total operating lease payments	51,213
Present value adjustment	(6,096)
Total operating lease liabilities (1)	$	45,117

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(1) Amount consists of a current and long-term portion of operating lease liabilities of $10.5 million and $34.6 million, respectively. The current portion of the operating lease liabilities is included in accrued liabilities in the Condensed Consolidated Balance Sheets.

Operating lease costs were $2.6 million and $3.0 million for the three months ended March 31, 2024 and 2023, respectively. Short-term lease costs and variable lease costs were not material for the three months ended March 31, 2024 and 2023. The Company recorded impairment and abandonment charges to operating lease right-of-use assets of $7.8 million during the three months ended March 31, 2023, in connection with restructuring activities to reduce its real estate footprint and for optimization of certain leased facilities. The impairment and abandonment charges were recorded to selling, general, and administrative expenses on the Company’s Condensed Consolidated Statements of Operations. Refer to Note 16, Restructuring Expenses, for additional information regarding the Company’s restructuring activities.

The following table summarizes supplemental cash flow information related to the Company’s operating leases for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	3,401	$	3,358
Right-of-use assets obtained in exchange for new lease liabilities	$	3,671	$	189

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Weighted-average remaining lease term, years	4.4		4.6
Weighted-average discount rate, %	5.8	%	5.8	%