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Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
The Company leases buildings or portions of buildings for guest usage and warehouses to store furniture under noncancellable operating lease agreements, which expire through 2045. The Company is required to pay property taxes, insurance, and maintenance costs for certain of these facilities.

The Company has lease agreements with lease and non-lease components and has elected to utilize the practical expedient to account for lease and non-lease components together in the condensed consolidated statements of operations and comprehensive income (loss).

Operating lease ROU assets are included within operating lease right-of-use assets in the condensed consolidated balance sheets. The corresponding operating lease liabilities are included within current operating lease liabilities and non-current operating lease liabilities in the condensed consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

Lease expense for fixed operating lease payments is recognized on a straight-line basis over the lease term. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option.

Components of lease expense are as follows (in thousands):

Three months ended June 30,Six months ended June 30,
2024202320242023
Operating lease cost$72,266 $75,437 $154,380 $148,616 
Short-term lease cost (benefit)
3 (201)38 421 
Variable lease cost2,176 3,369 2,441 6,819 
Total operating lease cost$74,445 $78,605 $156,859 $155,856 
Supplemental information related to operating leases is as follows (in thousands):

Three months ended June 30,Six months ended June 30,
2024202320242023
Cash payments for operating leases$77,474 $71,687 $158,980 $136,260 
Operating ROU assets obtained in exchange for operating lease liabilities, net of adjustments(1)
$(55,925)$77,163 $(137,811)$112,763 
Early lease terminations gains(1)
$71,123 $665 $95,024 $8,437 
(1) Operating ROU assets declines and early lease termination gains are primarily related to the impact of lease terminations. We undertook an initiative in 2024 to renegotiate or exit certain properties where there exists unfavorable lease terms.

At June 30, 2024 and December 31, 2023, the weighted-average remaining lease term was 7.1 years and 7.3 years, and the weighted-average discount rate used to determine the net present value of the lease liabilities was 9.4% and 9.6%, respectively.

At June 30, 2024, remaining maturities for operating lease liabilities are as follows (in thousands):

June 30, 2024
Remaining 2024$135,466 
2025271,254 
2026262,115 
2027232,096 
2028202,056 
Thereafter609,159 
Gross lease payments$1,712,146 
Less: imputed interest470,795 
Total operating lease liabilities, net
$1,241,351