Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.22.1
LEASES
3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
LEASES LEASES
 
We determine if a contract contains a lease at inception. Our material operating leases consist of retail and warehouse locations as well as office space. Our leases generally have remaining terms of 1-10 years, most of which include options to extend the leases for additional 3 to 5-year periods. Generally, the lease term is the minimum of the non-cancelable period of the lease or the lease term inclusive of reasonably certain renewal periods.
 
Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of remaining lease payments over the lease term. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term.
We have elected the practical expedient to account for lease and non-lease components as a single component for our entire population of leases.
Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset that we are reasonably certain to exercise are not recorded on the balance sheet.
Lease expense is recorded within our consolidated statements of operations based upon the nature of the assets. Where assets are used to directly serve our customers, such as facilities dedicated to customer contracts, lease costs are recorded in “store operating costs.” Facilities and assets which serve management and support functions are expensed through general and administrative expenses.

  March 31,
2022
December 31,
2021
Right of use assets, operating lease assets $ 45,839  $ 43,730 
Current lease liability $ 7,740  $ 6,858 
Non-current lease liability 39,879  38,546 
  $ 47,619  $ 45,404 
 
  March 31,
2022
March 31,
2021
Weighted average remaining lease term 6.85 years 3.34 years
Weighted average discount rate 5.5  % 6.0  %
 
  Three Months Ended
March 31,
  2022 2021
Operating lease costs $ 2,662  $ 1,541 
Variable lease costs 863  — 
Short-term lease costs 126  141 
Total operating lease costs $ 3,651  $ 1,682 
 
The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2022

2022 (remainder of the year) $ 7,641 
2023 9,711 
2024 8,519 
2025 7,478 
2026 5,841 
Thereafter 18,525 
Total lease payments 57,715 
Less: Imputed interest (10,096)
Lease Liability at March 31, 2022
$ 47,619