Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.24.3
LEASES
9 Months Ended
Sep. 30, 2024
LEASES  
LEASES

16. LEASES

Lessee

At September 30, 2024, the Company recorded $21.1 million as a right of use asset and $26.6 million as a lease liability. At December 31, 2023, the Company recorded $29.7 million as a right of use asset and $31.0 million as a lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the three and nine months ended September 30, 2024 and the year ended December 31, 2023. The right of use asset is included in Other noncurrent assets in the condensed consolidated balance sheets.

The Company reviews all supplier, vendor, and service provider contracts to determine whether any service arrangements contain a lease component. The Company identified two service agreements that contain an embedded lease. The agreements do not contain fixed or minimum payments, and the variable lease expense was immaterial during the three and nine months ended September 30, 2024 and 2023.

Information about other lease-related balances is as follows (in thousands):

Three Months Ended September 30, 

Nine Months Ended September 30, 

 

2024

2023

2024

2023

 

Lease cost

  

 

  

  

 

  

Operating lease cost

$

4,944

$

1,403

$

14,969

$

4,474

Short‑term lease cost

 

 

80

 

86

 

174

Variable lease cost

 

 

36

 

21

 

106

Finance lease cost

27

45

80

91

Total lease cost

$

4,971

$

1,564

$

15,156

$

4,845

Other Information

 

  

 

  

Operating cash flows used in operating leases

$

2,318

$

1,388

$

7,055

$

4,859

Operating cash flows used in finance leases

23

39

71

81

Weighted‑average remaining lease term—operating leases (years)

3.7

4.6

 

3.7

 

4.6

Weighted‑average remaining lease term—finance leases (years)

5.6

6.6

5.6

6.6

Weighted‑average discount rate—operating leases

6.2

%  

5.8

%  

6.2

%  

5.8

%

Weighted‑average discount rate—finance leases

3.1

%  

3.1

%  

 

3.1

%  

 

3.1

%

The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at September 30, 2024, are as follows (in thousands):

Operating Leases

    

Finance Leases

2024 (remaining 3 months)

$

2,332

$

2025

 

9,152

20

2026

 

7,322

79

2027

 

5,246

79

2028

 

3,388

79

2029 and after

1,679

325

Total lease payments

 

29,119

582

Less amount representing interest

 

(3,034)

(58)

Total lease liability

 

26,085

524

Less current portion of lease liability

 

(7,872)

(64)

Lease liability, net of current portion

$

18,213

$

460

In June 2023, the Company amended its existing facility lease for the headquarters and operating facility in Burlington, MA, extending the lease term set to expire in April 2024 through April 2029. The rent is not fixed and increases each year of the lease extension.