LEASES

3 Months Ended

Mar. 31, 2022

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