Leases (Notes)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lessee, Operating Leases

Leases

We elected to adopt ASC 842 using the modified retrospective method at the beginning of the period of adoption, January 1, 2019, through the recognition of a lease obligation and corresponding right of use asset. We elected the following transition related practical expedients: not to reassess whether any expired or existing contracts are or contain leases, not to reassess lease classification as determined under ASC 840, Leases, and, not to reassess initial direct costs for any existing lease. We have also elected not to apply the recognition and measurement requirements to short-term leases (less than 1 year).

Our operating leases are primarily made up of real estate. Our variable lease payments do not depend on an index or a rate or are not in substance fixed payments. Our leases have remaining lease terms of 1 month to 10 years, some of which include options to extend the leases for up to 14 years, and some of which include options to terminate the leases within 1 year. Our transportation vehicles and equipment leases include a residual value guarantee, which is a guarantee made to the lessor that the value of the underlying asset returned to the lessor at the end of the lease will be at least a specific amount. We sublease some of our real estate space. Sublease income is immaterial and is presented net with the corresponding lease expense. We recognize payments related to short-term leases (less than one year) as expense on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments were incurred. As such, our short-term lease expense for the year ended December 31, 2021, 2020, and 2019 was $5.2 million, $6.3 million, and $5.4 million, respectively. For the year ended December 31, 2021, 2020, and 2019 we incurred variable lease costs of $3.6 million, $2.7 million, and $2.4 million, respectively.

The balance sheet information related to our leases was as follows (dollars in thousands):

	December 31, 2021		December 31, 2020
Operating Leases
Operating lease right of use assets	$	75,319	$	94,825
Operating lease obligations—current	$	32,557	$	30,105
Operating lease obligations—long term	$	63,575	$	80,242
Finance Leases
Property and equipment—gross	$	797	$	705
Accumulated depreciation	(467)		(330)
Property and equipment—net	$	330	$	375
Accrued expenses and other current liabilities	$	204	$	178
Other long-term liabilities	$	144	$	227

The components of lease expense were as follows (in thousands):

	For the year ended  December 31,
	2021		2020		2019
Operating lease expenses	$	39,007	$	33,873	$	33,622
Finance Leases
Depreciation of right of use assets	$	179	$	168	$	147
Interest on lease liabilities	$	25	$	36	$	44

The weighted average information related to leases was as follows:

	December 31, 2021		December 31, 2020
Weighted Average Remaining Lease Term
Operating leases	4 years		4 years
Finance leases	2 years		3 years
Weighted Average Discount Rate
Operating leases	3	%	4	%
Finance leases	6	%	4	%

Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands):

For the year ended:	Operating Leases		Financing Leases
December 31, 2022	$	35,056	$	216
December 31, 2023	31,730		77
December 31, 2024	17,875		30
December 31, 2025	6,296		30
December 31, 2026	3,246		11
Thereafter	7,564		—
Total future minimum lease payments	101,767		364
Less imputed interest	(5,635)		(16)
Total	$	96,132	$	348