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Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
Leases | LEASES Lessor Information Refer to Note 1 to these consolidated financial statements for further information about the Company's revenue generating activities as a lessor. All of Progressive Leasing's customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases. Lessee Information As a lessee, the Company leases call center, management and information technology space for corporate functions under operating leases expiring at various times through 2027. To the extent that a leased property is vacated prior to the termination of the lease, the Company may sublease these spaces to third parties. The Company also leases space for its hub facilities, some of its vehicles, and information technology equipment under operating leases. For all of its leases in which the Company is a lessee, the Company has elected to include both the lease and non-lease components as a single component and account for it as a lease. The Company did not have any obligations under finance leases for any of the periods presented within the consolidated financial statements. Operating lease costs are recorded on a straight-line basis within operating expenses in the consolidated statements of earnings. The Company did not have any subleases in which it remained as the primary obligor during 2021 or 2020 and currently does not anticipate receiving any future sublease receipts. The Company’s total operating lease cost is comprised of the following:
| Year Ended December 31,
(In Thousands) | 2021 |  | 2020
Operating Lease cost: |  |  |
Operating Lease cost classified within Operating Expenses 1 | $ | 4,753 |  |  | $ | 4,481 |
Total Operating Lease cost: | $ | 4,753 |  |  | $ | 4,481 |
1 Short-term and variable lease expenses were not significant during the years ended December 31, 2021 and 2020. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. Additional information regarding the Company’s leasing activities as a lessee is as follows:
| Year Ended December 31,
(In Thousands) | 2021 |  | 2020
Cash Paid for amounts included in measurement of Lease Liabilities: |  |  |
Operating Cash Flows for Operating Leases | $ | 5,710 |  |  | $ | 5,252 |
Total Cash paid for amounts included in measurement of Lease Liabilities | 5,710 |  |  | 5,252 |
Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities | 35 |  |  | — |
Supplemental balance sheet information related to leases is as follows:
|  |  |  | December 31,
(In Thousands) |  | Balance Sheet Classification |  | 2021 |  | 2020
Assets |  |  |  |  |  |
Total Lease Assets |  | Operating Lease Right-of-Use Assets |  | $ | 17,488 |  |  | $ | 20,613 |
Liabilities |  |  |  |  |  |
Total Lease Liabilities |  | Operating Lease Liabilities |  | $ | 25,410 |  |  | $ | 29,516 |
Many of the Company’s real estate leases contain renewal options for additional periods ranging from three to five years. The Company currently does not have any real estate leases in which it considers the renewal options to be reasonably certain of exercise, as the Company's leases contain contractual renewal rental rates that are considered to be in line with market rental rates and there are not significant economic penalties or business disruptions incurred by not exercising any renewal options. The Company uses its incremental borrowing rate as the discount rate for its leases, as the implicit rate in the lease is not readily determinable. Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s operating leases:
| December 31,
| 2021 |  | 2020
| Weighted Average Discount Rate |  | Weighted Average Remaining Lease Term (in years) |  | Weighted Average Discount Rate |  | Weighted Average Remaining Lease Term (in years)
Operating Leases | 3.4 | % |  | 4.8 |  | 3.4 | % |  | 5.7
Under the short-term lease exception provided within ASC 842, the Company does not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted operating lease liabilities that have initial terms in excess of one year as of December 31, 2021. The table also includes a reconciliation of the future undiscounted cash flows to the present value of operating lease liabilities included in the consolidated balance sheets.
(In Thousands) | Total
2022 | $ | 5,801 |
2023 | 5,579 |
2024 | 5,399 |
2025 | 4,351 |
2026 | 3,911 |
Thereafter | 2,672 |
Total Undiscounted Cash Flows | 27,713 |
Less: Interest | (2,303) |
Present Value of Lease Liabilities | $ | 25,410 |
Leases | LEASES Lessor Information Refer to Note 1 to these consolidated financial statements for further information about the Company's revenue generating activities as a lessor. All of Progressive Leasing's customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases. Lessee Information As a lessee, the Company leases call center, management and information technology space for corporate functions under operating leases expiring at various times through 2027. To the extent that a leased property is vacated prior to the termination of the lease, the Company may sublease these spaces to third parties. The Company also leases space for its hub facilities, some of its vehicles, and information technology equipment under operating leases. For all of its leases in which the Company is a lessee, the Company has elected to include both the lease and non-lease components as a single component and account for it as a lease. The Company did not have any obligations under finance leases for any of the periods presented within the consolidated financial statements. Operating lease costs are recorded on a straight-line basis within operating expenses in the consolidated statements of earnings. The Company did not have any subleases in which it remained as the primary obligor during 2021 or 2020 and currently does not anticipate receiving any future sublease receipts. The Company’s total operating lease cost is comprised of the following:
| Year Ended December 31,
(In Thousands) | 2021 |  | 2020
Operating Lease cost: |  |  |
Operating Lease cost classified within Operating Expenses 1 | $ | 4,753 |  |  | $ | 4,481 |
Total Operating Lease cost: | $ | 4,753 |  |  | $ | 4,481 |
1 Short-term and variable lease expenses were not significant during the years ended December 31, 2021 and 2020. Short-term lease expense is defined as leases with a lease term of greater than one month, but not greater than 12 months. Additional information regarding the Company’s leasing activities as a lessee is as follows:
| Year Ended December 31,
(In Thousands) | 2021 |  | 2020
Cash Paid for amounts included in measurement of Lease Liabilities: |  |  |
Operating Cash Flows for Operating Leases | $ | 5,710 |  |  | $ | 5,252 |
Total Cash paid for amounts included in measurement of Lease Liabilities | 5,710 |  |  | 5,252 |
Right-of-Use Assets obtained in exchange for new Operating Lease Liabilities | 35 |  |  | — |
Supplemental balance sheet information related to leases is as follows:
|  |  |  | December 31,
(In Thousands) |  | Balance Sheet Classification |  | 2021 |  | 2020
Assets |  |  |  |  |  |
Total Lease Assets |  | Operating Lease Right-of-Use Assets |  | $ | 17,488 |  |  | $ | 20,613 |
Liabilities |  |  |  |  |  |
Total Lease Liabilities |  | Operating Lease Liabilities |  | $ | 25,410 |  |  | $ | 29,516 |
Many of the Company’s real estate leases contain renewal options for additional periods ranging from three to five years. The Company currently does not have any real estate leases in which it considers the renewal options to be reasonably certain of exercise, as the Company's leases contain contractual renewal rental rates that are considered to be in line with market rental rates and there are not significant economic penalties or business disruptions incurred by not exercising any renewal options. The Company uses its incremental borrowing rate as the discount rate for its leases, as the implicit rate in the lease is not readily determinable. Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s operating leases:
| December 31,
| 2021 |  | 2020
| Weighted Average Discount Rate |  | Weighted Average Remaining Lease Term (in years) |  | Weighted Average Discount Rate |  | Weighted Average Remaining Lease Term (in years)
Operating Leases | 3.4 | % |  | 4.8 |  | 3.4 | % |  | 5.7
Under the short-term lease exception provided within ASC 842, the Company does not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted operating lease liabilities that have initial terms in excess of one year as of December 31, 2021. The table also includes a reconciliation of the future undiscounted cash flows to the present value of operating lease liabilities included in the consolidated balance sheets.
(In Thousands) | Total
2022 | $ | 5,801 |
2023 | 5,579 |
2024 | 5,399 |
2025 | 4,351 |
2026 | 3,911 |
Thereafter | 2,672 |
Total Undiscounted Cash Flows | 27,713 |
Less: Interest | (2,303) |
Present Value of Lease Liabilities | $ | 25,410 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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