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Leases
9 Months Ended
Sep. 30, 2024
Leases  
Leases

Note 5.   Leases

The Company has operating and finance leases for facilities and certain equipment. Leases with an initial term of 12 months or less are expensed and not recorded on the condensed consolidated balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term.

The Company’s leases have non-cancelable lease terms of approximately one year to thirteen years, some of which include options to extend the leases for up to ten years. The exercise of lease renewal options is at the Company’s sole discretion. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, landlord incentives and/or inflation.

The Company’s office building lease in Aliso Viejo, California (Aliso Facility) is one property containing three existing office buildings, comprising approximately 160,000 rentable square feet of space, which was accounted for as a finance lease. The term of the Aliso Facility commenced on April 1, 2019 for expense recognition and continues for thirteen years. The lease agreement contains an option to extend the lease for two additional five year periods at market rates.

The Company also leases two adjacent buildings, two office suites and a warehouse located in San Clemente, California and a facility in Burlington, Massachusetts. The total leased square footage of the San Clemente facilities equals approximately 120,000 and the two most significant leases expire on May 31, 2030. Each of these two leases contain an option to extend the lease for one additional five-year period at market rates. The total leased square footage of the Burlington facility is approximately 60,000 square feet, and the lease expires on July 31, 2033. The Burlington facility lease contains an option to extend the lease for one additional five-year period at market rates.

The Company’s remaining foreign subsidiaries’ leased office and warehouse space totals less than 35,000 square feet.

The following table presents the maturity of the Company’s operating and finance lease liabilities within the condensed consolidated balance sheets:

Maturity of Lease Liabilities

Operating

Finance

(in thousands)

    

Leases (a)

Leases (b)

Remainder of 2024

$

1,018

$

1,306

2025

4,034

5,340

2026

4,034

5,500

2027

4,074

5,665

2028

4,152

5,835

2029

4,222

6,010

Thereafter

29,346

90,060

Total lease payments

$

50,880

$

119,716

Less: imputed interest

18,681

48,919

Total lease liabilities

$

32,199

$

70,797

(a)Operating lease payments include $23.2 million related to options to extend lease terms that are reasonably certain of being exercised.
(b)Finance lease payments include $75.8 million related to options to extend lease terms that are reasonably certain of being exercised.