Company: CWAN
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021833
Chunk: 64

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 Income tax payable196 403 Tax distributions payable to Continuing Equity Owners29 23 Other current liabilities9,786 10,237 Accrued expenses and other liabilities$60,514 $55,654 Other Long-term LiabilitiesOther long-term liabilities consisted of the following (in thousands):March 31,December 31,20252024Deferred tax liabilities$687 $1,310 Asset retirement obligation165 160 Accrued benefits696 — Other long-term liabilities$1,548 $1,470 

Note 8. Leases

The Company leases facilities under non-cancelable operating lease agreements with varying terms that range from one to 10 years. In addition, some of these leases have renewal options for up to five years. The Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities on the Company's condensed consolidated balance sheets. The Company does not have any finance leases. 

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Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Optional periods to extend a lease under renewal options are included in the lease term when it is reasonably certain that the option will be exercised. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs). Operating lease cost was $2.4 million for the three months ended March 31, 2025. Variable lease cost and short-term lease costs were immaterial during the three months ended March 31, 2025. Future minimum lease payments at March 31, 2025 under the Company’s non-cancelable leases were as