Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

Leases We have operating leases for office space, data centers and certain equipment. We also have finance leases for office space. Our leases have remaining lease terms of 1 year to 35 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. Operating lease costs recognized in our Condensed Consolidated Statements of Operations for the three months ended June 30, 2023 and 2022 totaled $6.5 million and $6.7 million, respectively, including short-term lease costs of $0.9 million and $0.3 million, respectively. Year-to-date June 30, 2023 and 2022 operating lease costs totaled $13.3 million and $13.2 million, respectively, including short-term lease costs of $1.3 million and $0.7 million, respectively. Amortization of the right-of-use asset for our finance leases totaled $0.2 million for the three months ended June 30, 2023 and $0.4 million for the six months ended June 30, 2023. Interest expense on the finance leases liability totaled $0.5 million for the three months ended June 30, 2023 and $1.0 million for the six months ended June 30, 2023.

Other information related to our leases was as follows:

(in thousands, except lease term and discount rate)	As of  June 30,  2023			As of  December 31,  2022
Balance Sheet Information
Operating Leases
Right-of-use assets	$	109,114		$	117,869
Other current liabilities	20,069			19,599
Operating lease liabilities	96,357			106,866
Financing Leases
Property and equipment, at cost	28,321			28,321
Accumulated depreciation	464			69
Property and equipment, net	27,857			28,252
Other current liabilities	—			426
Other liabilities	29,515			28,063
Weighted Average Remaining Lease Term
Operating leases	7.91 years			8.22 years
Finance leases	35.00 years			35.50 years
Weighted Average Discount Rate
Operating leases	4.34		%	4.34		%
Finance leases	7.10		%	7.10		%

	Three Months Ended  June 30,				Six Months Ended  June 30,
(in thousands)	2023		2022		2023		2022
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,329	$	6,198	$	12,708	$	12,256
Operating cash flows from finance leases	—		—		—		—
Financing cash flows from finance leases	—		—		—		—
Right-of-use assets obtained in exchange for operating lease obligations	—		1,232		2,439		1,463
Right-of-use assets obtained in exchange for finance lease obligations	—		—		—		—

Future minimum lease payments under non-cancellable leases as of June 30, 2023 were as follows:

(in thousands)	Operating Leases		Finance Leases
Remainder of 2023	$	13,580	$	426
2024	25,099		1,302
2025	20,422		1,776
2026	18,355		1,824
2027	15,819		1,875
Thereafter	45,398		92,050
Total future minimum lease payments	138,673		99,253
Less: Imputed interest	(22,247)		(69,738)
Total	$	116,426	$	29,515

Leases

Leases We have operating leases for office space, data centers and certain equipment. We also have finance leases for office space. Our leases have remaining lease terms of 1 year to 35 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. Operating lease costs recognized in our Condensed Consolidated Statements of Operations for the three months ended June 30, 2023 and 2022 totaled $6.5 million and $6.7 million, respectively, including short-term lease costs of $0.9 million and $0.3 million, respectively. Year-to-date June 30, 2023 and 2022 operating lease costs totaled $13.3 million and $13.2 million, respectively, including short-term lease costs of $1.3 million and $0.7 million, respectively. Amortization of the right-of-use asset for our finance leases totaled $0.2 million for the three months ended June 30, 2023 and $0.4 million for the six months ended June 30, 2023. Interest expense on the finance leases liability totaled $0.5 million for the three months ended June 30, 2023 and $1.0 million for the six months ended June 30, 2023.

Other information related to our leases was as follows:

(in thousands, except lease term and discount rate)	As of  June 30,  2023			As of  December 31,  2022
Balance Sheet Information
Operating Leases
Right-of-use assets	$	109,114		$	117,869
Other current liabilities	20,069			19,599
Operating lease liabilities	96,357			106,866
Financing Leases
Property and equipment, at cost	28,321			28,321
Accumulated depreciation	464			69
Property and equipment, net	27,857			28,252
Other current liabilities	—			426
Other liabilities	29,515			28,063
Weighted Average Remaining Lease Term
Operating leases	7.91 years			8.22 years
Finance leases	35.00 years			35.50 years
Weighted Average Discount Rate
Operating leases	4.34		%	4.34		%
Finance leases	7.10		%	7.10		%

	Three Months Ended  June 30,				Six Months Ended  June 30,
(in thousands)	2023		2022		2023		2022
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,329	$	6,198	$	12,708	$	12,256
Operating cash flows from finance leases	—		—		—		—
Financing cash flows from finance leases	—		—		—		—
Right-of-use assets obtained in exchange for operating lease obligations	—		1,232		2,439		1,463
Right-of-use assets obtained in exchange for finance lease obligations	—		—		—		—

Future minimum lease payments under non-cancellable leases as of June 30, 2023 were as follows:

(in thousands)	Operating Leases		Finance Leases
Remainder of 2023	$	13,580	$	426
2024	25,099		1,302
2025	20,422		1,776
2026	18,355		1,824
2027	15,819		1,875
Thereafter	45,398		92,050
Total future minimum lease payments	138,673		99,253
Less: Imputed interest	(22,247)		(69,738)
Total	$	116,426	$	29,515