LeasesThe Company leases certain facilities and equipment under non-cancelable operating leases which expire at various dates through 2031. Office and equipment leases are typically for terms of one to five years and generally provide renewal options. Some of the Company’s leases include options to terminate within one year.
During the year ended December 31, 2025, 2024, and 2023, the Company recorded impairments of $1.3 million, $0.9 million, and $2.2 million, respectively on its operating lease right of use assets within various reportable segments primarily related to exiting certain lease space as the Company regularly evaluates its office space requirements in light of more of its workforce working from home as part of a “remote” or “partial remote” work model. The impairments were determined by comparing the fair value of the impacted right-of-use asset to the carrying value of the asset as of the impairment measurement date, as required under ASC 360. The fair value of the right-of-use asset was based on the estimated sublease income for the affected facilities taking into consideration the time it will take to obtain a sublease tenant, the applicable discount rate and the sublease rate which represent Level 3 unobservable inputs. The impairments are presented in ‘General, administrative, and other related costs’ on the Consolidated Statements of Operations.
In certain agreements in which the Company leases office space where the Company is the tenant, it subleases the site to various other companies through a sublease agreement.
Operating right-of-use assets are included in ‘Other assets’ on the Consolidated Balance Sheets. Operating lease liabilities are included in ‘Other current liabilities’ and ‘Other noncurrent liabilities’, respectively, on the Consolidated Balance Sheets as follows (in thousands):
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Operating lease right-of-use assets | $ | 22,324 | | | $ | 26,249 | |
| | | |
| Operating lease liabilities, current | $ | 7,416 | | | $ | 8,666 | |
| Operating lease liabilities, noncurrent | 17,793 | | | 21,797 | |
| Total operating lease liabilities | $ | 25,209 | | | $ | 30,463 | |
The components of lease expense are as follows (in thousands): | | | | | | | | | | | | | |
| Years ended December 31, |
| 2025 | | 2024 | | |
| Operating lease cost | $ | 9,463 | | | $ | 10,760 | | | |
Short-term lease cost (1) | 85 | | | 519 | | | |
| Total lease cost | $ | 9,548 | | | $ | 11,279 | | | |
(1)The Company made an election to account for a short-term lease payments on a straight-line basis over the term of the lease.
Other supplemental operating lease information consists of the following:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Operating leases: | | | |
| Weighted average remaining lease term | 4.0 years | | 3.9 years |
| Weighted average discount rate | 4.58 | % | | 4.28 | % |
As of December 31, 2025, maturities of operating lease liabilities were as follows (in thousands):
| | | | | |
| 2026 | $ | 8,246 | |
| 2027 | 6,502 | |
| 2028 | 4,824 | |
| 2029 | 4,311 | |
| 2030 | 3,723 | |
| Thereafter | 1,444 | |
| Total lease payments | $ | 29,050 | |
| Less: Imputed interest | 3,841 | |
| Present value of operating lease liabilities | $ | 25,209 | |
Sublease
Total sublease income for the years ended December 31, 2025, 2024, and 2023 was $1.7 million, $5.3 million, and $6.0 million, respectively. Total estimated aggregate sublease income to be received in the future is $1.5 million.