Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

(11)Leases

The Company enters into operating leases primarily for standalone homes, luxury condos, and hotel rooms. The Company determines if an arrangement is a lease, or contains a lease, including embedded leases, at inception and records the leases in the Company’s financial statements upon later of ASC 842 adoption date of January 1, 2022, or lease commencement, which is the date when the underlying asset is made available for use by the lessor. Leases have initial terms of up to 10 years, and generally contain extension options at the approval of both parties. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option. Additionally, while the Company reserves termination rights on the majority of their leased properties, it is not reasonably certain to exercise any of its termination options. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Variable lease expense includes expenses incurred as a result of the lease agreement which are not considered known expenses at lease inception and are recognized as incurred. Variable expenses can include, but are not limited to, revenue shares, owner buyback adjustments, and usage based agreements. Operating lease expense and variable lease expense are included in cost of revenue on the condensed consolidated statement of operations.

The following table details the composition of operating lease expense for the three and six months ended June 30, 2022:

	Three Months Ended		Six Months Ended
	June 30, 2022		June 30, 2022
	(in thousands)
	(As Restated)		(As Restated)
Operating lease expense	$	19,733	$	38,054
Variable lease expense		534		1,193

As of June 30, 2022, the maturities of the Company’s operating lease liabilities (excluding short-term leases) were as follows:

	Operating Leases
	(in thousands)
	(As Restated)
Remainder of 2022	$	42,109
Year ending December 31, 2023		65,534
Year ending December 31, 2024		46,090
Year ending December 31, 2025		38,126
Year ending December 31, 2026		31,189
Thereafter		61,920
Total minimum lease payments		284,968
Less: interest expense		(18,737)
Present value of lease obligations		266,231
Less: current lease obligations		(74,245)
Long-term lease obligations	$	191,986

As previously reported in the Company’s audited financial statements for the year ended December 31, 2021 and under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows:

Years ending December 31,	Amount
	(in thousands)
2022	$	69,329
2023		58,744
2024		37,850
2025		28,203
2026		20,345
Thereafter		25,716
Total	$	240,187

The following table presents additional information about our lease obligations as of June 30, 2022:

	As of June 30, 2022
	(As Restated)
Weighted-average remaining lease term (in years):
Operating leases	4.99
Weighted-average discount rate:
Operating leases	5.02	%

The following table presents supplemental cash flow information for the six months ended June 30, 2022:

	Six Months Ended
	June 30, 2022
	(in thousands)
	(As Restated)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	41,002