Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
The Company leases office locations, warehouse facilities and stores under various non-cancellable operating lease agreements. The Company’s 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 from the lease terms any extension options that are not reasonably certain to be exercised, 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 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:
Year Ended December 31,
2022 2021 2020
Operating lease costs $ 8,890 $ 5,823 $ 1,192
Variable lease costs 609 343 130
Short-term lease costs 430 136 —
Total lease costs $ 9,929 $ 6,302 $ 1,322
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:
Year Ended December 31,
2022 2021 2020
Cash paid for operating lease liabilities $ 6,027 $ 5,490 $ 1,193
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 22,237 4,073 —
Other information relating to the Company’s operating leases was as follows:
As of December 31,
2022 2021
Weighted-average remaining lease term
 7.4 years 6.1 years
Weighted-average discount rate
 4.3% 3.9%
As of December 31, 2022, the maturities of operating lease liabilities were as follows:
2023 $ 8,322
2024 6,688
2025 5,971
2026 5,153
2027 4,944
Thereafter
 17,830
Total remaining lease payments
 48,908
Less: imputed interest
 7,861
Total operating lease liabilities
 41,047
Less: current portion
 (6,643)
Long-term operating lease liabilities
 $ 34,404
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 payments began in November 2022 when the store opened. Base rent payments for the first twelve months after the store opened 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.