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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of December 31, 2021 and December 31, 2020 (in thousands):
LeasesClassificationDecember 31,
2021		December 31,
2020
Assets
Operating lease assetsOther assets$72,605 $79,418 
Finance lease assets
Property and equipment(a)
80 2,103 
Total lease assets$72,685 $81,521 
Liabilities
Current
Operating lease liabilitiesAccrued expenses and other current liabilities$20,667 $20,848 
Finance lease liabilitiesCurrent portion of long-term debt36 1,105 
Non-current
Operating lease liabilitiesOther liabilities58,442 65,192 
Finance lease liabilitiesLong-term debt27 1,162 
Total lease liabilities$79,172 $88,307 
(a)
Recorded net of accumulated amortization of $27,000 and $2,162,000 as of December 31, 2021 and 2020, respectively.
The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the year ended December 31, 2021 and 2020 (in thousands):
Lease costClassification
Year ended
December 31, 2021
Year ended
December 31, 2020
Operating lease cost (a) (b)
Selling and administrative expenses$24,839 $25,918 
Finance lease cost
Amortization of leased assets
Selling and administrative expenses697 1,301 
Interest on lease liabilitiesInterest expense, net33 104 
Total lease cost$25,569 $27,323 
(a)Includes immaterial amounts recorded to cost of goods sold.
(b)Excludes short-term and variable lease costs, which are immaterial.
Future minimum lease payments under non-cancelable leases as of December 31, 2021 are as follows (in thousands):
Operating leases Finance leases Total
2022$22,387 $36 $22,423 
202316,757 27 16,784 
202411,509 — 11,509 
20259,525 — 9,525 
20268,232 — 8,232 
After 2026
18,261 — 18,261 
Total lease payments86,671 63 86,734 
Less: Interest(7,562)— (7,562)
Present value of lease liabilities$79,109 $63 $79,172 
Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised.
The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2021 and 2020:
December 31, 2021December 31, 2020
Weighted average remaining lease term (years):
Operating leases5.796.01
Finance leases1.752.37
Weighted average discount rate (%):
Operating leases3.09 3.35 
Finance leases1.49 3.27 
The following table provides other information related to leases for the year ended December 31, 2021 and 2020 (in thousands):
December 31, 2021December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$24,640 $25,849 
Leased assets obtained in exchange for new operating lease liabilities
15,980 25,583 
Leases Leases
We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of December 31, 2021 and December 31, 2020 (in thousands):
LeasesClassificationDecember 31,
2021		December 31,
2020
Assets
Operating lease assetsOther assets$72,605 $79,418 
Finance lease assets
Property and equipment(a)
80 2,103 
Total lease assets$72,685 $81,521 
Liabilities
Current
Operating lease liabilitiesAccrued expenses and other current liabilities$20,667 $20,848 
Finance lease liabilitiesCurrent portion of long-term debt36 1,105 
Non-current
Operating lease liabilitiesOther liabilities58,442 65,192 
Finance lease liabilitiesLong-term debt27 1,162 
Total lease liabilities$79,172 $88,307 
(a)
Recorded net of accumulated amortization of $27,000 and $2,162,000 as of December 31, 2021 and 2020, respectively.
The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the year ended December 31, 2021 and 2020 (in thousands):
Lease costClassification
Year ended
December 31, 2021
Year ended
December 31, 2020
Operating lease cost (a) (b)
Selling and administrative expenses$24,839 $25,918 
Finance lease cost
Amortization of leased assets
Selling and administrative expenses697 1,301 
Interest on lease liabilitiesInterest expense, net33 104 
Total lease cost$25,569 $27,323 
(a)Includes immaterial amounts recorded to cost of goods sold.
(b)Excludes short-term and variable lease costs, which are immaterial.
Future minimum lease payments under non-cancelable leases as of December 31, 2021 are as follows (in thousands):
Operating leases Finance leases Total
2022$22,387 $36 $22,423 
202316,757 27 16,784 
202411,509 — 11,509 
20259,525 — 9,525 
20268,232 — 8,232 
After 2026
18,261 — 18,261 
Total lease payments86,671 63 86,734 
Less: Interest(7,562)— (7,562)
Present value of lease liabilities$79,109 $63 $79,172 
Operating lease payments include $13.4 million related to options to extend lease terms that are reasonably certain of being exercised.
The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2021 and 2020:
December 31, 2021December 31, 2020
Weighted average remaining lease term (years):
Operating leases5.796.01
Finance leases1.752.37
Weighted average discount rate (%):
Operating leases3.09 3.35 
Finance leases1.49 3.27 
The following table provides other information related to leases for the year ended December 31, 2021 and 2020 (in thousands):
December 31, 2021December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$24,640 $25,849 
Leased assets obtained in exchange for new operating lease liabilities
15,980 25,583