Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases Leases
The Company leases office locations, warehouse facilities and stores under various non-cancellable operating lease agreements (real estate leases). Real estate leases have remaining lease terms of approximately 1 year to 10 years, which represent the non-cancellable periods of the leases and include extension options that the Company determined are reasonably certain to be exercised. The Company excludes extension options that are not reasonably certain to be exercised from the lease terms, ranging from approximately 6 months to 3 years. Lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common area maintenance and administrative services. The Company often receives customary incentives from landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. The Company does not have any material financing leases.
Operating lease right-of-use assets and liabilities on the condensed consolidated balance sheets represent the present value of the remaining lease payments over the remaining lease terms. The Company uses its incremental borrowing rate to calculate the present value of the lease payments, as the implicit rates in the leases are not readily determinable. Operating lease costs consist primarily of the fixed lease payments included in the operating lease liabilities and are recorded on a straight-line basis over the lease terms.
The Company’s operating lease costs were as follows:
Three Months Ended March 31,
2022 2021
Operating lease costs $ 2,165 $ 352
Variable lease costs 148 47
Short-term lease costs 129
Total lease costs $ 2,442 $ 399
The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants.
Supplemental cash flow information relating to the Company’s operating leases was as follows:
Three Months Ended March 31,
2022 2021
Cash paid for operating lease liabilities $ 1,834 $ 343
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 17,242 70
Other information relating to the Company’s operating leases was as follows:
March 31,
December 31,
Weighted-average remaining lease term
7.6 years 6.1 years
Weighted-average discount rate
4.3% 3.9%
As of March 31, 2022, the maturities of operating lease liabilities were as follows:
Remainder of 2022
$ 4,334
2023 9,236
2024 6,666
2025 5,843
2026 4,933
Total remaining lease payments
Less: imputed interest
Total operating lease liabilities
Less: current portion
Long-term operating lease liabilities
$ 37,361
On January 31, 2022, the Company entered into a lease agreement with Forum Shops, LLC to lease approximately 13,425 square feet of selling space located in the Forum Shops at Caesars Palace. The lease commenced in March 2022 and will require rent payments beginning in the latter half of 2022 when the store opens. Rent payments for the twelve months after the store opens will be approximately $1.7 million and have subsequent annual increases to such cash payments by 3.0% each year through the tenth anniversary of the lease commencement.