The Company has operating leases for corporate offices under non-cancelable agreements with various expiration dates. Our leases do not have significant rent escalation, holidays, concessions, material residual value guarantees, material restrictive covenants, or contingent rent provisions. Our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component. In addition, we have elected the practical expedient to exclude short-term leases, which have an original lease term of one year or less, from our right-of-use assets and lease liabilities as well as the package of practical expedients relating to adoption of Topic 842.

The Company subleases two offices. The subleases have remaining lease terms of less than seven years. Sublease income, which is recorded as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income from operations on our Consolidated Statements of Operations, was immaterial for the three months ended March 31, 2024 and 2023.


	March 31,		December 31,
(in millions)	2024		2023
Assets
Operating lease right-of-use assets, net	$	106.8	$	80.7

Liabilities
Current portion of operating lease liabilities	$	12.1	$	11.2
Operating lease liabilities, net of current portion	115.4		89.9
Total lease liabilities	$	127.5	$	101.1


	Three Months Ended March 31,
(in millions)	2024		2023
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of operating lease liabilities	$	2.9	$	2.3
Cash received for tenant incentive reimbursement	0.3		—

Lease liabilities arising from obtaining right-of-use assets

From new and existing lease agreements and modifications	$	28.4	$	—

The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized as of March 31, 2024 (in millions):


Year Ending December 31,	Operating Leases
2024 (excluding three months ended March 31, 2024)	$	(8.5)
2025	21.5
2026	28.5
2027	19.5
2028	18.6
Thereafter	105.5
Total future minimum lease payments	185.1
Less: Effects of discounting	57.6
Total lease liabilities	$	127.5

The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced. Included in the undiscounted future minimum lease payments for the year ended December 31, 2024 are future tenant improvement allowance reimbursements related to our Ra’anana, Israel, new Vancouver, Washington, and Waltham, Massachusetts leases.

Expense associated with short term leases and variable lease costs were immaterial for the three months ended March 31, 2024 and 2023. The expense related to short-term leases reasonably reflected our short-term lease commitments.

Undiscounted lease payments under all leases executed and not yet commenced are anticipated to be $228.1 million, of which $157.9 million relate to leases expected to commence in the three months ended June 30, 2024 and $200.6 million relate to leases expected to commence in 2024 (excluding the three months ended March 31, 2024). These payments are not included in the tabular disclosure of undiscounted future minimum lease payments under non-cancelable leases above.

Relating to our new corporate headquarters in Vancouver, Washington, the first and second phase of the lease commenced in March 2024. The commencement of these phases resulted in additional lease liabilities arising from obtaining right-of-use assets of $12.5 million and $15.0 million, respectively. As the commencement of the remaining subsequent phases of this lease are expected to occur between April and October 2024, the Company has not recorded operating lease right-of-use assets or lease liabilities for these phases as of March 31, 2024.