v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases 7. Leases
Real Estate Operating Leases
The Company leases real estate property at approximately 58 locations as of March 31, 2025. These leases are classified as operating leases. As of March 31, 2025, the remaining lease terms vary from approximately three months to nine years. For certain leases the Company has options to extend the lease term for periods varying from one month to ten years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term of 12 months or longer, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payment. The Company does not separate lease and non-lease components of these contracts and any fixed payments related to non-lease components, such as common area maintenance or other services provided by the landlord, are accounted for as a component of the lease payment and therefore, a part of the total lease cost.
Flexdrive Program
The Company operates a fleet of rental vehicles through its independently managed subsidiary, a portion of which are leased from third-party vehicle leasing companies. These leases are classified as finance leases and are included in property and equipment, net on the condensed consolidated balance sheets. As of March 31, 2025, the remaining lease terms vary between one month to four years. The Company has elected to separate lease and non-lease components for vehicles. These leases generally do not contain any non-lease components and, as such, all payments due under these arrangements are allocated to the respective lease component.
Lease Position
The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in thousands, except for remaining lease terms and percentages):
March 31,
2025		December 31,
2024
Operating Leases
Assets
Operating lease right-of-use assets
$146,272$148,397
Liabilities
Operating lease liabilities, current
$24,920$25,192
Operating lease liabilities, non-current
147,972152,074
Total operating lease liabilities$172,892$177,266
Finance Leases
Assets
Finance lease right-of-use assets(1)
$70,265$79,704
Liabilities
Finance lease liabilities, current(2)
$30,047$31,268
Finance lease liabilities, non-current(3)
46,22554,351
Total finance lease liabilities$76,272$85,619
Weighted-average remaining lease term (years)
Operating leases7.47.7
Finance leases2.42.6
Weighted-average discount rate
Operating leases6.6 %6.6 %
Finance leases6.4 %6.4 %
_______________
(1)This balance is included within property and equipment, net on the condensed consolidated balance sheets and is primarily related to Flexdrive.
(2)This balance is included within other current liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive.
(3)This balance is included within other liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive.
Lease Costs
The table below presents certain information related to the costs for operating leases and finance leases (in thousands):
Three Months Ended March 31,
20252024
Operating Leases
Operating lease cost$8,416 $10,004 
Finance Leases
Amortization of right-of-use assets$7,892 $6,306 
Interest on lease liabilities1,301 1,346 
Other Lease Costs
Short-term lease cost$762 $945 
Variable lease cost (1)
1,714 2,592 
Total lease cost$20,085 $21,193 
_______________
(1)Consists primarily of common area maintenance and taxes and utilities for real estate leases.
Sublease income was immaterial for the three months ended March 31, 2025 and March 31, 2024. Sublease income is included within other income, net on the condensed consolidated statement of operations. The related lease expense for these leases is included within costs and expenses on the condensed consolidated statement of operations.
The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the condensed consolidated statements of cash flows (in thousands):
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$10,621 $15,391 
Operating cash flows from finance leases1,187 1,277 
Financing cash flows from finance leases10,903 11,479 
Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the condensed consolidated balance sheets as of March 31, 2025 (in thousands):
Operating LeasesFinance LeasesTotal Leases
Remainder of 2025$25,556 $25,451 $51,007 
202635,207 32,049 67,256 
202730,911 16,329 47,240 
202825,804 9,602 35,406 
202924,864 — 24,864 
Thereafter78,606 — 78,606 
Total minimum lease payments220,948 83,431 304,379 
Less: amount of lease payments representing interest(48,056)(7,159)(55,215)
Present value of future lease payments172,892 76,272 249,164 
Less: current obligations under leases(24,920)(30,047)(54,967)
Long-term lease obligations$147,972 $46,225 $194,197 
Future lease payments receivable in car rental transactions under the Flexdrive program are not material since the lease term is less than a month.
Leases 7. Leases
Real Estate Operating Leases
The Company leases real estate property at approximately 58 locations as of March 31, 2025. These leases are classified as operating leases. As of March 31, 2025, the remaining lease terms vary from approximately three months to nine years. For certain leases the Company has options to extend the lease term for periods varying from one month to ten years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term of 12 months or longer, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payment. The Company does not separate lease and non-lease components of these contracts and any fixed payments related to non-lease components, such as common area maintenance or other services provided by the landlord, are accounted for as a component of the lease payment and therefore, a part of the total lease cost.
Flexdrive Program
The Company operates a fleet of rental vehicles through its independently managed subsidiary, a portion of which are leased from third-party vehicle leasing companies. These leases are classified as finance leases and are included in property and equipment, net on the condensed consolidated balance sheets. As of March 31, 2025, the remaining lease terms vary between one month to four years. The Company has elected to separate lease and non-lease components for vehicles. These leases generally do not contain any non-lease components and, as such, all payments due under these arrangements are allocated to the respective lease component.
Lease Position
The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in thousands, except for remaining lease terms and percentages):
March 31,
2025		December 31,
2024
Operating Leases
Assets
Operating lease right-of-use assets
$146,272$148,397
Liabilities
Operating lease liabilities, current
$24,920$25,192
Operating lease liabilities, non-current
147,972152,074
Total operating lease liabilities$172,892$177,266
Finance Leases
Assets
Finance lease right-of-use assets(1)
$70,265$79,704
Liabilities
Finance lease liabilities, current(2)
$30,047$31,268
Finance lease liabilities, non-current(3)
46,22554,351
Total finance lease liabilities$76,272$85,619
Weighted-average remaining lease term (years)
Operating leases7.47.7
Finance leases2.42.6
Weighted-average discount rate
Operating leases6.6 %6.6 %
Finance leases6.4 %6.4 %
_______________
(1)This balance is included within property and equipment, net on the condensed consolidated balance sheets and is primarily related to Flexdrive.
(2)This balance is included within other current liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive.
(3)This balance is included within other liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive.
Lease Costs
The table below presents certain information related to the costs for operating leases and finance leases (in thousands):
Three Months Ended March 31,
20252024
Operating Leases
Operating lease cost$8,416 $10,004 
Finance Leases
Amortization of right-of-use assets$7,892 $6,306 
Interest on lease liabilities1,301 1,346 
Other Lease Costs
Short-term lease cost$762 $945 
Variable lease cost (1)
1,714 2,592 
Total lease cost$20,085 $21,193 
_______________
(1)Consists primarily of common area maintenance and taxes and utilities for real estate leases.
Sublease income was immaterial for the three months ended March 31, 2025 and March 31, 2024. Sublease income is included within other income, net on the condensed consolidated statement of operations. The related lease expense for these leases is included within costs and expenses on the condensed consolidated statement of operations.
The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the condensed consolidated statements of cash flows (in thousands):
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$10,621 $15,391 
Operating cash flows from finance leases1,187 1,277 
Financing cash flows from finance leases10,903 11,479 
Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the condensed consolidated balance sheets as of March 31, 2025 (in thousands):
Operating LeasesFinance LeasesTotal Leases
Remainder of 2025$25,556 $25,451 $51,007 
202635,207 32,049 67,256 
202730,911 16,329 47,240 
202825,804 9,602 35,406 
202924,864 — 24,864 
Thereafter78,606 — 78,606 
Total minimum lease payments220,948 83,431 304,379 
Less: amount of lease payments representing interest(48,056)(7,159)(55,215)
Present value of future lease payments172,892 76,272 249,164 
Less: current obligations under leases(24,920)(30,047)(54,967)
Long-term lease obligations$147,972 $46,225 $194,197 
Future lease payments receivable in car rental transactions under the Flexdrive program are not material since the lease term is less than a month.