Note 16: Leases
The Company leases real estate, in the form of corporate office space and operating facilities, and certain office equipment. The Company’s real estate leases have noncancelable terms expiring in 2024 to 2033, certain of which have one to two renewal options of five to 10 years. The Company’s equipment leases have noncancelable terms expiring in 2024 to 2025.
Operating lease right-of-use assets of $15.3 million and $11.7 million were included within other long-term assets on the Company’s consolidated balance sheets as of December 31, 2023 and 2022, respectively.
Operating lease costs are included within operating expenses on the consolidated statements of operations and were $4.5 million and $3.1 million for the years ended December 31, 2023 and 2022, respectively.
Lease terms and discount rates consisted of the following as of:
| | | | | | | | | | | |
| December 31, |
| 2023 | | 2022 |
| Weighted average remaining lease term (years) | 5.8 | | 6.2 |
| Weighted average discount rate | 11.4 | % | | 11.7 | % |
Maturities of operating lease liabilities as of December 31, 2023 are as follows (in thousands):
| | | | | | | | |
| Year Ending December 31, | | |
| 2024 | | $ | 4,625 | |
| 2025 | | 4,084 | |
| 2026 | | 3,549 | |
| 2027 | | 3,211 | |
| 2028 | | 3,007 | |
| Thereafter | | 5,244 | |
| Total undiscounted future cash flows | | 23,720 | |
| Less: interest | | (7,375) | |
| Present value of operating lease liabilities | | $ | 16,345 | |
The current portions of operating right-of-use liabilities of $2.7 million and $1.6 million are included in accrued expenses and other current liabilities in the Company’s consolidated balance sheets as of December 31, 2023 and 2022, respectively.
Supplemental cash flows and other information related to leases are as follows:
| | | | | | | | | | | |
| Year Ended December 31, |
| 2023 | | 2022 |
| (in thousands) |
| Operating cash flows paid for operating leases | $ | 4,204 | | | $ | 3,339 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.