Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Leases

Real Estate Operating Leases

The Company leases real estate property at approximately 79 locations of which all leases have commenced as of June 30, 2022. These leases are classified as operating leases. As of June 30, 2022, the remaining lease terms vary from approximately one month to eight years. For certain leases the Company has options to extend the lease term for periods varying from two months to ten years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term of 12 months or longer, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payment. 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 its independently managed subsidiary, 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 sheets. As of June 30, 2022, the remaining lease terms vary between 1 month to 5 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, 2022

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

	June 30, 2022			December 31, 2021
Operating Leases
Assets
Operating lease right-of-use assets	$	201,215		$	223,412
Liabilities
Operating lease liabilities, current	$	48,651		$	53,765
Operating lease liabilities, non-current	188,993			210,232
Total operating lease liabilities	$	237,644		$	263,997
Finance Leases
Assets
Finance lease right-of-use assets(1)	$	30,465		$	26,802
Liabilities
Finance lease liabilities, current(2)	14,082			13,556
Finance lease liabilities, non-current(3)	18,025			14,242
Total finance lease liabilities	$	32,107		$	27,798
Weighted-average remaining lease term (years)
Operating leases	5.3			5.6
Finance leases	2.5			2.2
Weighted-average discount rate
Operating leases	6.3		%	6.3		%
Finance leases	3.1		%	2.8		%

_______________

(1)This balance is included within property and equipment, net on the condensed consolidated balance sheets and is primarily related to Flexdrive leases.

(2)This balance is included within other current liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive leases.

(3)This balance is included within other liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive leases.

Lease Costs

The table below presents certain information related to the costs for operating leases and finance leases for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating Leases
Operating lease cost	$	17,559	$	18,304	$	35,161	$	36,165
Finance Leases
Amortization of right-of-use assets	3,566		5,649		7,762		13,455
Interest on lease liabilities	226		278		415		572
Other Lease Costs
Short-term lease cost	1,508		1,205		2,986		3,060
Variable lease cost (1)	4,785		1,813		8,993		3,774
Total lease cost	$	27,644	$	27,249	$	55,317	$	57,026

_______________

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

Sublease income was $3.8 million and $7.5 million for the three and six months ended June 30, 2022 which was primarily related to subleases from the Company's transaction with Woven Planet in the third quarter of 2021. Sublease income is included within other income, net on the condensed consolidated statement of operations. The related lease expense for these leases is included within operating expenses on the condensed consolidated statement of operations.

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,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	39,313	$	40,836
Operating cash flows from finance leases	437		558
Financing cash flows from finance leases	15,728		18,656

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 lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2022 (in thousands):

	Operating Leases		Finance Leases		Total Leases
Remainder of 2022	$	30,349	$	8,233	$	38,582
2023	60,394		13,423		73,817
2024	53,883		8,289		62,172
2025	42,410		1,501		43,911
2026	28,474		776		29,250
Thereafter	68,097		1,411		69,508
Total minimum lease payments	283,607		33,633		317,240
Less: amount of lease payments representing interest	(45,963)		(1,526)		(47,489)
Present value of future lease payments	237,644		32,107		269,751
Less: current obligations under leases	(48,651)		(14,082)		(62,733)
Long-term lease obligations	$	188,993	$	18,025	$	207,018

Future lease payments receivable in car rental transactions under the Flexdrive Program are not material since the lease term is less than a month.

Leases

Leases

Real Estate Operating Leases

The Company leases real estate property at approximately 79 locations of which all leases have commenced as of June 30, 2022. These leases are classified as operating leases. As of June 30, 2022, the remaining lease terms vary from approximately one month to eight years. For certain leases the Company has options to extend the lease term for periods varying from two months to ten years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term of 12 months or longer, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payment. 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 its independently managed subsidiary, 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 sheets. As of June 30, 2022, the remaining lease terms vary between 1 month to 5 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, 2022

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

	June 30, 2022			December 31, 2021
Operating Leases
Assets
Operating lease right-of-use assets	$	201,215		$	223,412
Liabilities
Operating lease liabilities, current	$	48,651		$	53,765
Operating lease liabilities, non-current	188,993			210,232
Total operating lease liabilities	$	237,644		$	263,997
Finance Leases
Assets
Finance lease right-of-use assets(1)	$	30,465		$	26,802
Liabilities
Finance lease liabilities, current(2)	14,082			13,556
Finance lease liabilities, non-current(3)	18,025			14,242
Total finance lease liabilities	$	32,107		$	27,798
Weighted-average remaining lease term (years)
Operating leases	5.3			5.6
Finance leases	2.5			2.2
Weighted-average discount rate
Operating leases	6.3		%	6.3		%
Finance leases	3.1		%	2.8		%

_______________

(1)This balance is included within property and equipment, net on the condensed consolidated balance sheets and is primarily related to Flexdrive leases.

(2)This balance is included within other current liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive leases.

(3)This balance is included within other liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive leases.

Lease Costs

The table below presents certain information related to the costs for operating leases and finance leases for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating Leases
Operating lease cost	$	17,559	$	18,304	$	35,161	$	36,165
Finance Leases
Amortization of right-of-use assets	3,566		5,649		7,762		13,455
Interest on lease liabilities	226		278		415		572
Other Lease Costs
Short-term lease cost	1,508		1,205		2,986		3,060
Variable lease cost (1)	4,785		1,813		8,993		3,774
Total lease cost	$	27,644	$	27,249	$	55,317	$	57,026

_______________

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

Sublease income was $3.8 million and $7.5 million for the three and six months ended June 30, 2022 which was primarily related to subleases from the Company's transaction with Woven Planet in the third quarter of 2021. Sublease income is included within other income, net on the condensed consolidated statement of operations. The related lease expense for these leases is included within operating expenses on the condensed consolidated statement of operations.

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,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	39,313	$	40,836
Operating cash flows from finance leases	437		558
Financing cash flows from finance leases	15,728		18,656

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 lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2022 (in thousands):

	Operating Leases		Finance Leases		Total Leases
Remainder of 2022	$	30,349	$	8,233	$	38,582
2023	60,394		13,423		73,817
2024	53,883		8,289		62,172
2025	42,410		1,501		43,911
2026	28,474		776		29,250
Thereafter	68,097		1,411		69,508
Total minimum lease payments	283,607		33,633		317,240
Less: amount of lease payments representing interest	(45,963)		(1,526)		(47,489)
Present value of future lease payments	237,644		32,107		269,751
Less: current obligations under leases	(48,651)		(14,082)		(62,733)
Long-term lease obligations	$	188,993	$	18,025	$	207,018

Future lease payments receivable in car rental transactions under the Flexdrive Program are not material since the lease term is less than a month.