Columbia Sportswear Company Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2023

The components of lease cost consisted of the following:


	Year Ended December 31,
(in thousands)	2023		2022		2021
Operating lease cost	$	83,866	$	76,650	$	71,996
Variable lease cost	65,376		63,537		67,745
Short term lease cost	10,117		5,775		5,612
	$	159,359	$	145,962	$	145,353

For the year ended December 31, 2023, there were no impairments recorded for ROU assets related to underperforming retail locations or gains from lease termination negotiations or settlements related to previous store closures. For the year ended December 31, 2022, operating lease costs included $0.8 million of ROU asset impairment charges related to underperforming retail locations, as well as a gain of $4.8 million from the completion of lease termination negotiations and settlements related to certain retail store closures in 2020 and 2022, primarily in the U.S. segment. For the year ended December 31, 2021, operating lease costs included $0.5 million of ROU asset impairment charges related to underperforming retail locations primarily in the EMEA. segment, as well as a gain of $8.6 million from the completion of lease termination negotiations and settlements related to certain 2020 retail store closures, primarily in the U.S. segment.

In the periods presented, lease concessions reducing variable lease expense were not material.

The following table presents supplemental cash flow information related to leases:


	Year Ended December 31,
(in thousands)	2023		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	85,793	$	81,130	$	83,827
Operating lease liabilities arising from obtaining ROU assets(1)	$	83,393	$	51,976	$	53,168
Reductions to ROU assets resulting from reductions to operating lease liabilities	$	234	$	52	$	118

(1) Includes amounts added to the carrying amount of lease liabilities resulting from lease modifications and reassessments.

The following table presents supplemental balance sheet information related to leases:


	December 31,
	2023		2022
Weighted average remaining lease term	5.45 years		6.02 years
Weighted average discount rate	4.42	%	4.21	%

The following table presents the future maturities of operating lease liabilities as of December 31, 2023:


(in thousands)
2024	$	86,610
2025	81,884
2026	74,278
2027	63,143
2028	55,021
Thereafter	106,339
Total operating lease payments	467,275
Less: imputed interest	(59,417)
Total operating lease liabilities	407,858
Less: current operating lease liabilities	(71,086)
Non-current operating lease liabilities	$	336,772

As of December 31, 2023, the Company has additional commitments for operating lease that have not yet commenced of $3.8 million. These leases will commence in 2024 with lease terms of approximately one to ten years.