LEASES

3 Months Ended

Mar. 31, 2024

The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the right-of-use assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 7.8 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were not material for the three months ended March 31, 2024 and 2023.

During the three months ended March 31, 2024 and 2023, the components of lease cost were as follows:


		Three Months Ended March 31,
	Income Statement Classification	2024		2023
Operating lease cost	Selling, general and administrative expenses	$	10,853	$	11,183
Variable lease cost	Selling, general and administrative expenses	2,629		3,648
Short-term lease cost	Selling, general and administrative expenses	959		2,656
Total lease cost		$	14,441	$	17,487

Supplemental cash flow information related to leases for the three months ended March 31, 2024 and 2023 was as follows:


	Three Months Ended March 31,
		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases		$	11,703	$	11,719
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$	7,653	$	3,349
Non-cash net increase due to lease modifications:
Operating lease right-of-use assets		$	5,299	$	1,383
Operating lease liabilities		$	5,190	$	1,114

Weighted average remaining lease term and discount rate as of March 31, 2024 and 2023 were as follows:


	As of March 31, 2024		As of March 31, 2023
Weighted average remaining lease term, in years:
Operating leases	4.9		5.3
Weighted average discount rate:
Operating leases	4.3	%	3.3	%

As of March 31, 2024, operating lease liabilities will mature as follows:


Year ending December 31,	Lease Payments
2024 (excluding three months ended March 31, 2024)	$	31,706
2025	36,502
2026	31,054
2027	22,461
2028	18,596
Thereafter	20,637
Total lease payments	160,956
Less: imputed interest	(14,383)
Total	$	146,573

The Company had committed to payments of $4.7 million related to operating lease agreements that had not yet commenced as of March 31, 2024. These operating leases will commence on various dates during 2024 with lease terms ranging from 0.8 to 5.0 years. The Company did not have any material finance lease agreements that had not yet commenced.