Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.22.2.2
LEASES
9 Months Ended
Sep. 30, 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 to 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-cancellable 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.

  September 30,
2022
December 31,
2021
Right of use assets, operating lease assets $ 44,510  $ 43,730 
Current lease liability $ 7,970  $ 6,858 
Non-current lease liability 38,588  38,546 
Total lease liability $ 46,558  $ 45,404 
 
  September 30,
2022
September 30,
2021
Weighted average remaining lease term 6.68 years 6.89 years
Weighted average discount rate 5.5  % 6.5  %

  Three Months Ended September 30,
  2022 2021
Operating lease costs $ 2,615  2,139 
Variable lease costs 664  — 
Short-term lease costs 69  103 
Total operating lease costs $ 3,348  $ 2,242 
  Nine Months Ended
September 30,
  2022 2021
Operating lease costs $ 8,060  $ 5,687 
Variable lease costs 2,004  — 
Short-term lease costs 306  1,212 
Total operating lease costs $ 10,370  $ 6,899 
 
The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2022

2022 (remainder of the year) $ 2,614 
2023 10,121 
2024 8,971 
2025 7,914 
2026 6,291 
Thereafter 20,041 
Total lease payments 55,952 
Less: Imputed interest (9,394)
Lease Liability at September 30, 2022
$ 46,558