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Property and Equipment
9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block] Property and Equipment
Property and equipment consists of the following:
As of September 30,As of December 31,
20242023
(in millions)
Furniture and equipment$1.8 $1.8 
Leasehold improvements0.5 0.5 
Computers and software44.3 45.7 
Automobiles0.6 0.6 
Property and equipment, gross47.2 48.6 
Accumulated depreciation(40.2)(42.1)
Property and equipment, net$7.0 $6.5 
Depreciation expenses related to property and equipment for the three and nine months ended September 30, 2024 were $0.8 million and $2.7 million, respectively, and $4.8 million for the year ended December 31, 2023. Capitalized costs associated with internally developed software were $0.6 million and $1.9 million during the three and nine months ended September 30, 2024, respectively, and $1.8 million during the year ended December 31, 2023.
Cloud Computing Arrangements
Capitalized costs associated with cloud computing arrangements totaled $18.8 million and $28.0 million, which were comprised of service contract fees and implementation costs associated with hosting arrangements as of September 30, 2024 and December 31, 2023, respectively. Total amortization for hosting arrangements was $3.1 million and $10.4 million for the three and nine months ended September 30, 2024, respectively, and $16.7 million for the year ended December 31, 2023.
Leases
The Company determines if an arrangement is a lease at the inception of the transaction. Operating leases for offices are presented as both an Operating lease right-of-use (ROU) asset and an Operating lease liability on the Company’s Consolidated Balance Sheets. Finance leases for automobiles are presented as both Property and equipment and Other liabilities on the Company’s Consolidated Balance Sheets.
ROU assets represent the right to use an underlying asset for the lease term and the lease liability represents the obligation to make lease payments arising from the lease transaction. Operating lease assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. The Company uses collateralized incremental borrowing rates to determine the present value of lease payments. ROU assets also include lease payments less any lease incentives within a lease agreement. The Company’s lease terms may include options to extend or terminate a lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As of September 30, 2024, the Company’s operating leases have remaining terms of one year to five years, with options to extend up to five years with no termination provision. The Company’s finance leases have an option to terminate after one year.
Components of lease expense were as follows:
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
(in millions)
Operating lease expense$0.3 $0.2 $0.8 $1.3 
Finance lease expense— — 0.1 0.1 
Total lease expense$0.3 $0.2 $0.9 $1.4 
As of September 30, 2024, the weighted average remaining lease terms for operating and financing leases were 3.4 years and 1.4 years, respectively, and the associated weighted average discount rates were 1.3% and 7.4%, respectively.
Maturities of lease liabilities were as follows:
As of September 30, 2024
Operating LeasesFinance Leases
(in millions)
2024$0.5 $— 
20251.5 0.1 
20261.2 — 
20271.2 — 
2028
0.4 — 
Thereafter— — 
Total lease payments4.8 0.1 
Less: imputed interest(0.1)— 
Total$4.7 $0.1 
Supplemental balance sheet information related to leases was as follows:
As of September 30,As of December 31,
20242023
(in millions)
Operating leases:
Operating lease right-of-use asset$4.0 $5.1 
Operating lease liability4.7 5.9 
Finance leases:
Property and equipment, gross0.6 0.6 
Accumulated depreciation(0.5)(0.4)
Property and equipment, net0.1 0.2 
Other liabilities$0.1 $0.2 
Supplemental cash flow information related to leases was as follows:
Nine Months Ended
September 30,
20242023
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases$0.8 $1.3 
Financing cash flows used for finance leases0.1 0.2 
Restructuring, Impairment, and Other Activities Disclosure
Lease Exit and Disposal Costs
During the nine months ended September 30, 2023, the Company recorded a $9.4 million non-recurring charge in connection with the early termination of the lease associated with the Company's former corporate headquarters in Reno, Nevada. This charge included a one-time lease termination payment of $7.6 million, a write-off related to remaining leasehold improvements and furniture and equipment of $2.6 million, and estimated miscellaneous expenses associated with exiting the property of $0.2 million. The Company also recognized a related lease termination gain pertaining to the elimination of the lease liability, net of an associated ROU asset of $1.0 million, which was included in Other expenses on the Company’s Consolidated Statements of Comprehensive Income (Loss). The decision to terminate this operating lease was undertaken as part of an ongoing review of the Company's facility needs.