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Leases | 6 Months Ended
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Jun. 30, 2024
Leases [Abstarct] |
Leases | 8. Leases The Company leases its manufacturing and distribution facilities, corporate offices, Purple showrooms and certain equipment under non-cancelable operating leases with various expiration dates through 2036. The Company’s office and manufacturing leases provide for initial lease terms up to 16 years, while Purple showrooms have initial lease terms of up to 10 years. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at the Company’s discretion. Any lease renewal options are included in the lease term if exercise is reasonably certain at lease commencement. The Company also leases vehicles and other equipment under both operating and finance leases with initial lease terms of three to five years. The right-of-use asset (“ROU”) for finance leases totaled $0.6 million and $0.7 million at June 30, 2024 and December 31, 2023, respectively. The following table presents the Company’s lease costs (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Operating lease costs |  | $ | 5,178 |  |  | $ | 4,620 |  |  | $ | 9,964 |  |  | $ | 9,505 |
Variable lease costs |  |  | 1,173 |  |  |  | 1,204 |  |  |  | 2,042 |  |  |  | 2,177 |
Total lease costs |  | $ | 6,351 |  |  | $ | 5,824 |  |  | $ | 12,006 |  |  | $ | 11,682 |
The table below reconciles the undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet at June 30, 2024 (in thousands):
2024 (excluding the six months ended June 30, 2023)(a) |  | $ | 10,093 |
2025 |  |  | 21,274 |
2026 |  |  | 19,926 |
2027 |  |  | 19,688 |
2028 |  |  | 19,666 |
Thereafter |  |  | 54,681 |
Total operating lease payments |  |  | 145,328 |
Less – lease payments representing interest |  |  | (27,989 | )
Present value of operating lease payments |  | $ | 117,339 |
(a) | Amount consists of $10.8 million of undiscounted cash flows offset by $0.7 million of tenant improvement allowances which are expected to be fully utilized in fiscal 2024.
As of June 30, 2024 and December 31, 2023, the weighted-average remaining term of operating leases was 7.7 years and 8.0 years, respectively, and the weighted-average discount rate of operating leases was 5.81% and 5.77%, respectively. The following table provides supplemental information related to the Company’s condensed consolidated statement of cash flows for the six months ended June 30, 2024 and 2023 (in thousands):
|  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |
Cash paid for amounts included in present value of operating lease liabilities (b) |  | $ | 8,388 |  |  | $ | 6,691 |
Right-of-use assets obtained in exchange for operating lease liabilities |  |  | 2,981 |  |  |  | 3,518 |
| (b) | Operating cash flows paid for operating leases are included within the change in operating leases, net within the condensed consolidated statement of cash flows offset by non-cash ROU asset amortization and lease liability accretion.

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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