Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2
Leases
6 Months Ended
Jun. 30, 2022
Leases  
Leases

Note 9 – Leases

The components of lease expense for the six months ended June 30, 2022 and 2021 are as follows (in thousands):

June 30, 

 

June 30, 

 

2022

 

2021

 

Lease cost

Operating lease cost

 

$

7,317

 

$

6,621

Variable lease cost

5,597

2,622

Short-term lease cost

521

322

Total lease cost

 

$

13,435

 

$

9,565

Weighted average remaining lease term – operating leases

13 years

13 years

Weighted average discount rate – operating leases

8.40

%

8.49

%

Due to the negative effects of COVID-19, the Company implemented measures to reduce its costs, including negotiations with landlords regarding rent concessions. As the rent concessions received do not result in a significant increase in cash payments, the Company elected to account for these concessions as a variable lease payment in accordance with ASC Topic 842. The Company’s

right-of-use assets and operating lease liabilities have not been remeasured for lease concessions received. Variable lease cost is comprised of percentage rent and common area maintenance, offset by rent concessions received as a result of COVID-19.

Supplemental cash flow information related to leases for the period was as follows (in thousands):

June 30, 

June 30, 

2022

2021

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

6,531

 

$

5,682

Right-of-use assets obtained in exchange for operating lease obligations

 

$

3,709

 

$

34

As of June 30, 2022, maturities of the Company’s operating lease liabilities are as follows (in thousands):

2022, six months remaining

$

3,164

2023

15,164

2024

14,663

2025

13,705

2026

13,636

Thereafter

131,925

Total lease payments

192,257

Less: imputed interest

(81,879)

Present value of operating lease liabilities

 

$

110,378