Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Leases

Real Estate Operating Leases

The Company leases real estate property at approximately 86 locations with 84 commenced leases and two not yet commenced leases having an initial term of 12 months or longer as of June 30, 2020. These leases are classified as operating leases. As of June 30, 2020, the remaining lease terms vary from approximately six months to ten years. For certain leases the Company has options to extend the lease term for periods varying from two to ten years. These renewal options are not considered in the lease term unless it is reasonably certain that the Company will exercise such options. Any fixed payments related to non-lease components, such as common area maintenance or other services provided by the landlord, are accounted for as a component of the lease payment and therefore, a part of the total lease cost.

Flexdrive Program

The Company operates a fleet of rental vehicles through Flexdrive, a portion of which are leased from third-party vehicle leasing companies. These leases are classified as finance leases and are included in property and equipment, net on the condensed consolidated balance sheet. As of June 30, 2020, the remaining lease terms vary from one month to five years. These leases generally do not contain any non-lease components and, as such, all payments due under these arrangements are allocated to the respective lease component.

Lease Position as of June 30, 2020

The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheet (in thousands, except for remaining lease terms and percentages):

	June 30, 2020			December 31, 2019
Operating Leases
Assets
Operating lease right-of-use assets	$	297,173		$	441,258
Liabilities
Operating lease liabilities, current	$	48,282		$	94,199
Operating lease liabilities, non-current	293,017			382,077
Total operating lease liabilities	$	341,299		$	476,276
Finance Leases
Assets
Finance lease right-of-use assets(1)	$	48,445		$	—
Liabilities
Finance lease liabilities, current(2)	32,791			—
Finance lease liabilities, non-current(3)	15,377			—
Total finance lease liabilities	$	48,168		$	—
Weighted-average remaining lease term (years)
Operating leases	6.6			5.6
Finance leases	1.6			—
Weighted-average discount rate
Operating leases	6.5		%	6.6		%
Finance leases	4.6		%	—		%

_______________

(1)This balance is included within property and equipment, net on the condensed consolidated balance sheets and was primarily related to leases acquired in the Flexdrive transaction. Refer to Note 3 "Acquisition" to the condensed consolidated financial statements for information regarding this transaction.

(2)This balance is included within other current liabilities on the condensed consolidated balance sheets and was primarily related to leases acquired in the Flexdrive transaction. Refer to Note 3 "Acquisition" to the condensed consolidated financial statements for information regarding this transaction.

(3)This balance is included within other liabilities on the condensed consolidated balance sheets and was primarily related to leases acquired in the Flexdrive transaction. Refer to Note 3 "Acquisition" to the condensed consolidated financial statements for information regarding this transaction.

Lease Costs

The table below presents certain information related to the lease costs recorded on the condensed consolidated statements of operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating Leases
Operating lease cost	$	18,027	$	25,275	$	44,257	$	48,814
Finance Leases
Amortization of right-of-use assets	10,194		—		16,361		—
Interest on lease liabilities	540		—		980		—
Other Lease Costs
Short-term lease cost	1,311		2,199		2,325		3,932
Variable lease cost (1)	3,304		3,296		7,044		6,296
Total lease cost	$	33,376	$	30,770	$	70,967	$	59,042

_______________

(1)Consists primarily of common area maintenance, taxes and utilities for real estate leases, and certain vehicle-related charges under the Flexdrive program.

The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the condensed consolidated statements of cash flows (in thousands):

	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	29,739	$	35,684
Operating cash flows from finance leases	980		—
Financing cash flows from finance leases	18,042		—

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and finance lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2020 (in thousands):

	Operating Leases		Finance Leases		Total Leases
Remainder of 2020	$	35,014	$	19,891	$	54,905
2021	76,655		23,186		99,841
2022	72,240		4,581		76,821
2023	55,539		1,325		56,864
2024	50,992		1,145		52,137
Thereafter	137,322		—		137,322
Total minimum lease payments	$	427,762	$	50,128	$	477,890
Less: amount of lease payments representing interest	(86,463)		(1,960)		(88,423)
Present value of future minimum lease payments	$	341,299	$	48,168	$	389,467
Less: current obligations under leases	(48,282)		(32,791)		(81,073)
Long-term lease obligations	$	293,017	$	15,377	$	308,394

As of June 30, 2020, the Company had an immaterial amount of real estate leases that had not yet commenced. These leases are expected to commence in 2020 with lease terms of five to seven years.

Leases

Leases

Real Estate Operating Leases

The Company leases real estate property at approximately 86 locations with 84 commenced leases and two not yet commenced leases having an initial term of 12 months or longer as of June 30, 2020. These leases are classified as operating leases. As of June 30, 2020, the remaining lease terms vary from approximately six months to ten years. For certain leases the Company has options to extend the lease term for periods varying from two to ten years. These renewal options are not considered in the lease term unless it is reasonably certain that the Company will exercise such options. Any fixed payments related to non-lease components, such as common area maintenance or other services provided by the landlord, are accounted for as a component of the lease payment and therefore, a part of the total lease cost.

Flexdrive Program

The Company operates a fleet of rental vehicles through Flexdrive, a portion of which are leased from third-party vehicle leasing companies. These leases are classified as finance leases and are included in property and equipment, net on the condensed consolidated balance sheet. As of June 30, 2020, the remaining lease terms vary from one month to five years. These leases generally do not contain any non-lease components and, as such, all payments due under these arrangements are allocated to the respective lease component.

Lease Position as of June 30, 2020

The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheet (in thousands, except for remaining lease terms and percentages):

	June 30, 2020			December 31, 2019
Operating Leases
Assets
Operating lease right-of-use assets	$	297,173		$	441,258
Liabilities
Operating lease liabilities, current	$	48,282		$	94,199
Operating lease liabilities, non-current	293,017			382,077
Total operating lease liabilities	$	341,299		$	476,276
Finance Leases
Assets
Finance lease right-of-use assets(1)	$	48,445		$	—
Liabilities
Finance lease liabilities, current(2)	32,791			—
Finance lease liabilities, non-current(3)	15,377			—
Total finance lease liabilities	$	48,168		$	—
Weighted-average remaining lease term (years)
Operating leases	6.6			5.6
Finance leases	1.6			—
Weighted-average discount rate
Operating leases	6.5		%	6.6		%
Finance leases	4.6		%	—		%

_______________

(1)This balance is included within property and equipment, net on the condensed consolidated balance sheets and was primarily related to leases acquired in the Flexdrive transaction. Refer to Note 3 "Acquisition" to the condensed consolidated financial statements for information regarding this transaction.

(2)This balance is included within other current liabilities on the condensed consolidated balance sheets and was primarily related to leases acquired in the Flexdrive transaction. Refer to Note 3 "Acquisition" to the condensed consolidated financial statements for information regarding this transaction.

(3)This balance is included within other liabilities on the condensed consolidated balance sheets and was primarily related to leases acquired in the Flexdrive transaction. Refer to Note 3 "Acquisition" to the condensed consolidated financial statements for information regarding this transaction.

Lease Costs

The table below presents certain information related to the lease costs recorded on the condensed consolidated statements of operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating Leases
Operating lease cost	$	18,027	$	25,275	$	44,257	$	48,814
Finance Leases
Amortization of right-of-use assets	10,194		—		16,361		—
Interest on lease liabilities	540		—		980		—
Other Lease Costs
Short-term lease cost	1,311		2,199		2,325		3,932
Variable lease cost (1)	3,304		3,296		7,044		6,296
Total lease cost	$	33,376	$	30,770	$	70,967	$	59,042

_______________

(1)Consists primarily of common area maintenance, taxes and utilities for real estate leases, and certain vehicle-related charges under the Flexdrive program.

The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the condensed consolidated statements of cash flows (in thousands):

	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	29,739	$	35,684
Operating cash flows from finance leases	980		—
Financing cash flows from finance leases	18,042		—

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and finance lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2020 (in thousands):

	Operating Leases		Finance Leases		Total Leases
Remainder of 2020	$	35,014	$	19,891	$	54,905
2021	76,655		23,186		99,841
2022	72,240		4,581		76,821
2023	55,539		1,325		56,864
2024	50,992		1,145		52,137
Thereafter	137,322		—		137,322
Total minimum lease payments	$	427,762	$	50,128	$	477,890
Less: amount of lease payments representing interest	(86,463)		(1,960)		(88,423)
Present value of future minimum lease payments	$	341,299	$	48,168	$	389,467
Less: current obligations under leases	(48,282)		(32,791)		(81,073)
Long-term lease obligations	$	293,017	$	15,377	$	308,394

As of June 30, 2020, the Company had an immaterial amount of real estate leases that had not yet commenced. These leases are expected to commence in 2020 with lease terms of five to seven years.