ROKU INC
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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9. Leases
- LEASES
The Company's operating leases are primarily for office facilities. The leases have remaining terms ranging from less thanone year tonine years and may include options to extend or terminate the lease. The depreciable life of operating lease right-of-use assets is limited by the expected lease term. The Company has executed sublease agreements for a portion of its available office space. The subleases are also classified as operating leases.
The components of lease expense are as follows (in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |
| Operating lease expense | $16,046 | $21,097 | $52,426 | $64,243 |
| Variable lease expense | 5,765 | 5,623 | 16,518 | 17,995 |
| Sublease income | (4,871) | — | (7,756) | — |
| Total operating lease expense | $16,940 | $26,720 | $61,188 | $82,238 |
Supplemental cash flow information related to leases is as follows (in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |
| Cash paid for amounts included in the measurement of lease liabilities: | ||||
| Operating cash outflows from operating leases | $24,192 | $19,097 | $67,914 | $54,417 |
| Right-of-use assets obtained in exchange for lease obligations: | ||||
| Operating leases | $5,616 | $28,795 | $8,501 | $40,704 |
| Decrease in operating lease right-of-use assets due to impairment (See Note 16 for details) | $11,386 | $101,077 | $22,618 | $104,867 |
Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):
| As of | ||
|---|---|---|
| September 30, 2024 | December 31, 2023 | |
| Operating lease right-of-use assets | $314,326 | $371,444 |
| Operating lease liability, current (included in Accrued liabilities) | $77,815 | $68,099 |
| Operating lease liability, non-current | 535,378 | 586,174 |
| Total operating lease liability | $613,193 | $654,273 |
| Weighted-average remaining term for operating leases (in years) | 7.2 | 7.9 |
| Weighted-average discount rate for operating leases | 3.96% | 3.94% |
Future lease payments under operating leases excluding any sublease income from sublease arrangements as of September 30, 2024 are as follows (in thousands):
| Year Ending December 31, | Operating Leases |
|---|---|
| 2024 (remaining 3 months) | $24,447 |
| 2025 | 101,538 |
| 2026 | 102,067 |
| 2027 | 100,352 |
| 2028 | 100,380 |
| Thereafter | 283,199 |
| Total future lease payments | 711,983 |
| Less: imputed interest | (95,531) |
| Less: expected tenant improvement allowance | (3,259) |
| Total (1) | $613,193 |
(1)Total lease liabilities include liabilities related to operating leases right-of-use assets which were included in the impairment charges as part of the Company’s restructuring efforts reflected in Note 16 to the condensed consolidated financial statements.
As of September 30, 2024, the Company had approximately $1 million in commitments relating to operating leases that have not yet commenced.
As of September 30, 2024, the Company expects to receive approximately $86.3 million from its sublease arrangements which have a weighted average remaining lease term of approximately 5.5 years.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.