Leases

9 Months Ended

Sep. 30, 2024

8. Leases

Finance lease right-of-use assets of $1.8 million and $16.0 million as of September 30, 2024 and December 31, 2023, respectively, are included in property and equipment, net on the consolidated balance sheet. Due to the relocation of one of our office locations (see Note 6), we reduced the useful life of the related finance lease right-of-use asset, which represented $13.2 million of incremental depreciation (excluding accelerated depreciation on leasehold improvements) for the three and nine months ended September 30, 2024. We also reduced the useful life of the related operating lease right-of-use asset, which represented $1.0 million of additional operating lease cost for the three and nine months ended September 30, 2024.

The following table presents components of lease expense for the three and nine months ended September 30, 2024 and 2023, respectively (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Finance lease cost
Amortization of right-of-use assets	$	13,442	$	397	$	14,236	$	1,190
Interest on lease liabilities		186		198		568		602
Operating lease cost		1,978		970		3,752		2,817
Variable lease cost		206		216		357		316
Short-term lease		162		167		526		613
Total lease cost	$	15,974	$	1,948	$	19,439	$	5,538

Maturities of lease liabilities as of September 30, 2024 are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	1,355	$	394
2025		5,900		1,604
2026		5,035		1,641
2027		2,731		1,678
2028		2,479		1,714
Thereafter		2,764		9,309
Total future minimum lease payments		20,264		16,340
Less: Interest		1,971		3,936
Total	$	18,293	$	12,404

Supplemental cash flow information related to leases for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,358	$	1,381	$	3,995	$	4,017
Financing cash flows for financing leases		394		317		1,179		1,160
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	2,411	$	—	$	3,005	$	1,768

Supplemental balance sheet information related to leases as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024	December 31, 2023
Weighted average remaining lease term (years):
Operating leases	4.3	4.9
Financing leases	9.3	10.1
Weighted average discount rate:
Operating leases	4.7	4.4
Financing leases	5.9	5.9