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Leases | 3 Months Ended
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Mar. 31, 2023
Leases [Abstract] |
Leases | LeasesThe Company leases its office facilities and office equipment under noncancelable lease agreements which expire at various dates through March 2033. Some of these lease agreements include an option to renew at the end of the term. The Company also leases certain office facilities on a month-to-month basis. In some instances, the Company is also required to pay its pro rata share of real estate taxes and utility costs in connection with the premises. Some of the leases contain fixed annual increases of minimum rent. The Company’s leases frequently allow for lease payments that could vary based on factors such as inflation and the incurrence of contractual charges such as those for common area maintenance or utilities. Renewal and/or early termination options are common in the lease arrangements, particularly with respect to real estate leases. The Company’s right-of-use assets and lease liabilities generally include periods covered by renewal options and exclude periods covered by early termination options (based on the conclusion that it is reasonably certain that the Company will exercise such renewal options and not exercise such early termination options). The Company is also party to certain sublease arrangements related to real estate leases, where the Company acts as the lessee and intermediate lessor. The Company has acquired delivery vehicles and patient medical equipment and supplies through multiple finance leases. The finance lease obligations represent the present value of minimum lease payments under the respective agreement, payable monthly at various interest rates. The following table presents information about the Company’s right-of-use assets and lease liabilities as of March 31, 2023 and December 31, 2022 (in thousands):
| Consolidated Balance Sheets Line Item |  | March 31, 2023 |  | December 31, 2022
Right-of-use (ROU) assets: |  |  |  |  |
Operating lease ROU assets | Operating lease right-of-use assets |  | $ | 123,023 |  |  | $ | 129,506 |
Finance lease ROU assets | Finance lease right-of-use assets |  | 7,403 |  |  | 5,423 |
Finance lease ROU assets | Equipment and other fixed assets, net |  | — |  |  | 103 |
Total ROU assets |  |  | $ | 130,426 |  |  | $ | 135,032 |
Operating lease liabilities: |  |  |  |  |
Current operating lease liabilities | Current portion of operating lease obligations |  | $ | 29,711 |  |  | $ | 30,001 |
Noncurrent operating lease liabilities | Operating lease obligations, less current portion |  | 97,237 |  |  | 104,394 |
Total operating lease liabilities |  |  | $ | 126,948 |  |  | $ | 134,395 |
Finance lease liabilities: |  |  |  |  |
Current finance lease liabilities | Current portion of finance lease obligations |  | $ | 2,248 |  |  | $ | 2,211 |
Noncurrent finance lease liabilities | Finance lease obligations, less current portion |  | 5,338 |  |  | 3,950 |
Total finance lease liabilities |  |  | $ | 7,586 |  |  | $ | 6,161 |
The following table presents information about lease costs and expenses and sublease income for the three months ended March 31, 2023 and 2022 (in thousands). The amounts below are included in cost of net revenue in the accompanying consolidated statements of operations for the periods presented.
| Three Months Ended March 31,
| 2023 |  | 2022
Operating lease costs | $ | 10,474 |  |  | $ | 9,638 |
Finance lease costs: |  |  |
Amortization of ROU assets | $ | 530 |  |  | $ | 4,461 |
Other lease costs and income: |  |  |
Variable leases costs (1) | $ | 6,021 |  |  | $ | 4,245 |
Sublease income | $ | 378 |  |  | $ | 335 |
(1)Amounts represent variable costs incurred that were not included in the initial measurement of the lease liability such as common area maintenance and utilities costs associated with leased real estate. The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of March 31, 2023 and December 31, 2022:
| March 31, 2023 |  | December 31, 2022
Weighted average remaining lease term, weighted based on lease liability balances: |  |  |
Operating leases | 6.1 years |  | 6.2 years
Finance leases | 3.6 years |  | 3.7 years
Weighted average discount rate, weighted based on remaining balance of lease payments: |  |  |
Operating leases | 3.9 | % |  | 3.9 | %
The following table provides the undiscounted amount of future cash flows related to the Company’s operating and finance leases, as well as a reconciliation of such undiscounted cash flows to the amounts included in the Company’s lease liabilities as of March 31, 2023 (in thousands):
| Operating Leases |  | Finance Leases
2023 | $ | 37,765 |  | $ | 1,852
2024 | 29,340 |  | 2,225
2025 | 24,381 |  | 2,224
2026 | 17,161 |  | 1,730
2027 | 11,566 |  | 159
Thereafter | 35,916 |  | —
Total future undiscounted lease payments | $ | 156,129 |  | $ | 8,190
Less: amount representing interest | (29,181) |  |  | (604) |
Present value of future lease payments (lease liability) | $ | 126,948 |  | $ | 7,586
The following table provides certain cash flow and supplemental non-cash information related to the Company’s lease liabilities for the three months ended March 31, 2023 and 2022, respectively (in thousands):
| Three Months Ended March 31,
Cash paid for amounts included in the measurement of lease liabilities: | 2023 |  | 2022
Operating cash payments for operating leases | $ | 11,356 |  |  | $ | 9,581 |
Financing cash payments for finance leases | $ | 981 |  |  | $ | 8,156 |
Lease liabilities arising from obtaining right-of-use assets: |  |  |
Operating leases | $ | 3,847 |  |  | $ | 2,627 |
Finance leases | $ | 2,407 |  |  | $ | 1,335 |

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