Leases

12 Months Ended

Dec. 31, 2023

The Company primarily leases office space, data centers, vehicles, and equipment. Some of our leases contain variable lease payments, typically payments based on an index. The Company’s leases have remaining lease terms of one year to thirty years, some of which include options to extend from one to five years or more. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not reasonably certain to exercise and are not included in Right of Use (ROU) assets and lease liabilities. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement. Additional payments based on the change in an index or rate are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability as of the modification date.

Other assets include ROU assets, other current liabilities include short-term operating lease liabilities, and other non-current liabilities include long-term lease liabilities at December 31, 2023 and 2022 is as follows (in thousands):


	2023		2022
ROU assets	$	86,579	$	94,064
Short term lease liabilities	$	23,476	$	22,661
Long term lease liabilities	$	75,796	$	86,671

The Company does not recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases were not material to the ROU assets and lease liabilities.

Under ASC 842, the Company discounts future lease obligations by the rate implicit in the contract, unless the rate cannot be readily determined. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. In determining the borrowing rate, the Company considers the applicable lease terms, the Company's cost of borrowing, and for leases denominated in a foreign currency, the collateralized borrowing rate that the Company would obtain to borrow in the same currency in which the lease is denominated.

Total lease costs for the years ended December 31, 2023, 2022, and 2021 were $29.7 million, $24.1 million, and $22.6 million, respectively. Variable lease costs and short-term lease costs were immaterial for all periods presented.

The supplementary cash and non-cash disclosures for the years ended December 31, 2023, 2022, and 2021 are as follows (in thousands):


	2023		2022		2021
Cash paid for operating lease liabilities	$	31,388	$	25,403	$	23,803
ROU assets obtained in exchange for new operating lease obligations	$	22,764	$	31,204	$	29,428
Weighted-average remaining lease term (years)	5.62		6.09		5.99
Weighted-average discount rate	5.19%		3.64%		3.80%

Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands):


2023	$	27,455
2024	24,566
2025	19,917
2026	12,143
2027	8,870
Thereafter	22,203
Total lease payments	115,154
Less imputed interest	15,882
Present value of lease liabilities	$	99,272