Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

As of March 31, 2022, the undiscounted future lease payments for operating and finance lease liabilities were as follows:

(in thousands)	Operating		Finance
2022 (remaining)	$	48,135	$	16,756
2023	55,336		18,638
2024	46,826		15,717
2025	39,301		15,825
2026	28,736		13,815
Thereafter	63,915		17,416
Total lease payments	282,249		98,167
Less: interest	(40,673)		(7,474)
Present value of lease liabilities	$	241,576	$	90,693

Finance lease liabilities are included within long-term debt and current portion of long-term debt on the condensed consolidated balance sheets.

The Company’s lease activity during the three months ended March 31, 2022 and 2021 was as follows:

(in thousands)	Three Months Ended March 31,
Financial Statement Line	2022		2021
Finance Lease Expense
Amortization of finance lease assets	$	5,224	$	4,378
Interest on obligations under finance leases	654		547
Total finance lease expense	$	5,878	$	4,925
Operating Lease Expense
Fixed lease expense
Cost of leasing and services	$	825	$	1,106
Selling, general and administrative	16,289		14,472
Lease impairment expense and other related charges	213		596
Short-term lease expense
Cost of leasing and services	9,042		6,379
Selling, general and administrative	715		552
Variable lease expense
Cost of leasing and services	1,287		1,802
Selling, general and administrative	2,169		1,838
Lease impairment expense and other related charges	50		176
Total operating lease expense	$	30,590	$	26,921

Lease impairment expense and other related charges relate to closed locations that are no longer used in operations as a result of consolidation activities within the Company. During the three months ended March 31, 2022, the Company recorded $0.3 million in lease impairment expense and other related charges which is comprised of closed location rent expense. During the three months ended March 31, 2021, the Company recorded $1.3 million in lease impairment expense and other related charges which is comprised of $0.5 million loss on lease exit and impairment charges and $0.8 million in closed location rent expense.

Supplemental cash flow information related to leases for the three months ended March 31, 2022 and 2021 was as follows:

(in thousands)	Three Months Ended March 31,
Supplemental Cash Flow Information	2022		2021
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	17,334	$	16,458
Operating cash outflows from finance leases	$	636	$	549
Financing cash outflows from finance leases	$	5,263	$	3,771
Right of use assets obtained in exchange for lease obligations	$	8,810	$	10,878
Assets obtained in exchange for finance leases	$	7,011	$	3,366

Weighted-average remaining operating lease terms and the weighted average discount rates as of March 31, 2022 and December 31, 2021 were as follows:

Lease Terms and Discount Rates	March 31, 2022		December 31, 2021
Weighted-average remaining lease term - operating leases	6.0 years		6.1 years
Weighted-average discount rate - operating leases	4.9	%	5.0	%
Weighted-average remaining lease term - finance leases	4.5 years		4.5 years
Weighted-average discount rate - finance leases	2.9	%	2.9	%

Leases

Leases

As of March 31, 2022, the undiscounted future lease payments for operating and finance lease liabilities were as follows:

(in thousands)	Operating		Finance
2022 (remaining)	$	48,135	$	16,756
2023	55,336		18,638
2024	46,826		15,717
2025	39,301		15,825
2026	28,736		13,815
Thereafter	63,915		17,416
Total lease payments	282,249		98,167
Less: interest	(40,673)		(7,474)
Present value of lease liabilities	$	241,576	$	90,693

Finance lease liabilities are included within long-term debt and current portion of long-term debt on the condensed consolidated balance sheets.

The Company’s lease activity during the three months ended March 31, 2022 and 2021 was as follows:

(in thousands)	Three Months Ended March 31,
Financial Statement Line	2022		2021
Finance Lease Expense
Amortization of finance lease assets	$	5,224	$	4,378
Interest on obligations under finance leases	654		547
Total finance lease expense	$	5,878	$	4,925
Operating Lease Expense
Fixed lease expense
Cost of leasing and services	$	825	$	1,106
Selling, general and administrative	16,289		14,472
Lease impairment expense and other related charges	213		596
Short-term lease expense
Cost of leasing and services	9,042		6,379
Selling, general and administrative	715		552
Variable lease expense
Cost of leasing and services	1,287		1,802
Selling, general and administrative	2,169		1,838
Lease impairment expense and other related charges	50		176
Total operating lease expense	$	30,590	$	26,921

Lease impairment expense and other related charges relate to closed locations that are no longer used in operations as a result of consolidation activities within the Company. During the three months ended March 31, 2022, the Company recorded $0.3 million in lease impairment expense and other related charges which is comprised of closed location rent expense. During the three months ended March 31, 2021, the Company recorded $1.3 million in lease impairment expense and other related charges which is comprised of $0.5 million loss on lease exit and impairment charges and $0.8 million in closed location rent expense.

Supplemental cash flow information related to leases for the three months ended March 31, 2022 and 2021 was as follows:

(in thousands)	Three Months Ended March 31,
Supplemental Cash Flow Information	2022		2021
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	17,334	$	16,458
Operating cash outflows from finance leases	$	636	$	549
Financing cash outflows from finance leases	$	5,263	$	3,771
Right of use assets obtained in exchange for lease obligations	$	8,810	$	10,878
Assets obtained in exchange for finance leases	$	7,011	$	3,366

Weighted-average remaining operating lease terms and the weighted average discount rates as of March 31, 2022 and December 31, 2021 were as follows:

Lease Terms and Discount Rates	March 31, 2022		December 31, 2021
Weighted-average remaining lease term - operating leases	6.0 years		6.1 years
Weighted-average discount rate - operating leases	4.9	%	5.0	%
Weighted-average remaining lease term - finance leases	4.5 years		4.5 years
Weighted-average discount rate - finance leases	2.9	%	2.9	%