Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Lease Cost and Activity

The Company's lease costs and activity during the three and nine months ended September 30, 2019 were as follows (in thousands):

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Lease costs:
Finance leases:
Amortization of finance lease assets	$	2,222	$	5,477
Interest on obligations under finance leases	547		1,392
Total finance lease costs	$	2,769	$	6,869
Operating leases:
Fixed lease costs	$	3,487	$	8,759
Fixed lease costs to related parties	1,849		5,577
Variable short-term lease costs to related parties	390		1,177
Total operating lease costs	$	5,726	$	15,513
Cash payments related to lease liabilities included in operating cash flows:
Operating lease liabilities to third parties	$	2,877	$	6,147
Operating lease liabilities to related parties	$	2,024	$	6,333
Interest payments on finance lease liabilities	$	547	$	1,392
Cash payments related to lease liabilities included in financing cash flows:
Principal payments on finance lease liabilities	$	2,306	$	5,581

Schedule of Finance Lease, Maturity, After Adopting 842

The following table summarizes maturities of lease liabilities as of September 30, 2019 (in thousands):

			Operating Leases (1)
	Finance Leases		Related Party (2)		Non-Related Party		Total Operating		Total
Remainder of 2019	$	2,960	$	2,022	$	3,402	$	5,424	$	8,384
2020	11,174		7,692		13,555		21,247		32,421
2021	10,701		7,154		12,348		19,502		30,203
2022	10,308		7,179		10,336		17,515		27,823
2023	9,649		7,212		7,531		14,743		24,392
Thereafter	3,030		31,660		46,893		78,553		81,583
Total minimum lease payments	47,822		62,919		94,065		156,984		204,806
Less: amount representing interest	(5,262)		(19,668)		(36,632)		(56,300)		(61,562)
Total lease liabilities	$	42,560	$	43,251	$	57,433	$	100,684	$	143,244

(1) Leases that are on a month-to-month basis, short-term leases, and lease extensions that the Company does not expect to exercise are not included.

(2) Related party lease payments exclude rent payments due under the DriveTime Lease Agreement and the DriveTime Hub Lease Agreement for locations where the Company shares space with DriveTime, as those are variable lease payments contingent upon the Company's utilization of the leased assets.

Schedule of Operating Lease, Maturity, After Adopting 842

The following table summarizes maturities of lease liabilities as of September 30, 2019 (in thousands):

			Operating Leases (1)
	Finance Leases		Related Party (2)		Non-Related Party		Total Operating		Total
Remainder of 2019	$	2,960	$	2,022	$	3,402	$	5,424	$	8,384
2020	11,174		7,692		13,555		21,247		32,421
2021	10,701		7,154		12,348		19,502		30,203
2022	10,308		7,179		10,336		17,515		27,823
2023	9,649		7,212		7,531		14,743		24,392
Thereafter	3,030		31,660		46,893		78,553		81,583
Total minimum lease payments	47,822		62,919		94,065		156,984		204,806
Less: amount representing interest	(5,262)		(19,668)		(36,632)		(56,300)		(61,562)
Total lease liabilities	$	42,560	$	43,251	$	57,433	$	100,684	$	143,244

(1) Leases that are on a month-to-month basis, short-term leases, and lease extensions that the Company does not expect to exercise are not included.

(2) Related party lease payments exclude rent payments due under the DriveTime Lease Agreement and the DriveTime Hub Lease Agreement for locations where the Company shares space with DriveTime, as those are variable lease payments contingent upon the Company's utilization of the leased assets.

Schedule of Operating Lease Maturity, Before Adopting 842

Therefore, the following future minimum lease payments as of December 31, 2018

prepared under previous lease accounting guidance has been included from the Company's 2018 Annual Report on Form 10-K filed on February 27, 2019 (in thousands):

					Operating Leases (1)
	Capital Leases		Other Real Estate Financing Transactions (3)		Related Party (2)		Non-Related Party		Total
2019	$	3,779	$	3,566	$	6,461	$	8,306	$	14,767
2020	3,779		3,575		6,716		8,202		14,918
2021	3,779		3,583		6,869		7,387		14,256
2022	3,779		3,609		7,020		6,580		13,600
2023	3,275		3,837		7,140		5,330		12,470
Thereafter	—		62,081		36,770		38,402		75,172
Total minimum lease payments	$	18,391	$	80,251	$	70,976	$	74,207	$	145,183
Less amounts representing interest	(2,237)
	$	16,154

(1) Leases that are on a month-to-month basis and lease extensions that the Company does not expect to take are not included.

(2) Related party lease payments exclude rent payments due under the DriveTime Lease Agreement and the DriveTime Hub Lease Agreement for locations where the Company shares space with DriveTime, as those are contingent upon the Company's utilization of the leased assets.

(3) These were previously presented as finance leases and represent the Company's sale and leaseback transactions that are accounted for as other real estate financing transactions, as further discussed in Note 9 — Debt Instruments.

Schedule of Capital and Finance Lease Maturity, Before Adopting 842

Therefore, the following future minimum lease payments as of December 31, 2018

prepared under previous lease accounting guidance has been included from the Company's 2018 Annual Report on Form 10-K filed on February 27, 2019 (in thousands):

					Operating Leases (1)
	Capital Leases		Other Real Estate Financing Transactions (3)		Related Party (2)		Non-Related Party		Total
2019	$	3,779	$	3,566	$	6,461	$	8,306	$	14,767
2020	3,779		3,575		6,716		8,202		14,918
2021	3,779		3,583		6,869		7,387		14,256
2022	3,779		3,609		7,020		6,580		13,600
2023	3,275		3,837		7,140		5,330		12,470
Thereafter	—		62,081		36,770		38,402		75,172
Total minimum lease payments	$	18,391	$	80,251	$	70,976	$	74,207	$	145,183
Less amounts representing interest	(2,237)
	$	16,154

(1) Leases that are on a month-to-month basis and lease extensions that the Company does not expect to take are not included.

(2) Related party lease payments exclude rent payments due under the DriveTime Lease Agreement and the DriveTime Hub Lease Agreement for locations where the Company shares space with DriveTime, as those are contingent upon the Company's utilization of the leased assets.

(3) These were previously presented as finance leases and represent the Company's sale and leaseback transactions that are accounted for as other real estate financing transactions, as further discussed in Note 9 — Debt Instruments.

Schedule of Weighted-Average Remaining Lease Terms and Discount Rates

The weighted-average remaining lease terms and discount rates as of September 30, 2019 were as follows, excluding short-term operating leases:

Weighted-average remaining lease terms (years)
Operating leases	10.4
Finance leases	4.5
Weighted-average discount rate
Operating leases	8.7	%
Finance leases	5.5	%