Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases
The components of lease cost consisted of the following:

Year Ended December 31,
(in thousands) 2022 2021 2020
Operating lease cost $ 76,650  $ 71,996  $ 104,906 
Variable lease cost 63,537  67,745  58,391 
Short term lease cost 5,775  5,612  9,600 
$ 145,962  $ 145,353  $ 172,897 
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. For the year ended December 31, 2020, operating lease cost included $16.5 million of accelerated amortization for retail locations that permanently closed during 2020 for which the related lease liabilities had not been extinguished as of December 31, 2020 due to ongoing negotiations with the landlords. In addition, for the year ended December 31, 2020, operating lease cost included $7.0 million of ROU asset impairment charges related to underperforming retail locations primarily in the U.S. segment for the year ended December 31, 2020.

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) 2022 2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 81,130  $ 83,827  $ 82,083 
Operating lease liabilities arising from obtaining ROU assets(1)
$ 51,976  $ 53,168  $ 22,416 
Reductions to ROU assets resulting from reductions to operating lease liabilities $ 52  $ 118  $ 6,400 
(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,
2022 2021
Weighted average remaining lease term 6.02 years 5.72 years
Weighted average discount rate 4.21  % 3.25  %
The following table presents the future maturities of lease liabilities as of December 31, 2022:

(in thousands)
2023 $ 79,832 
2024 73,958 
2025 64,814 
2026 57,184 
2027 48,000 
Thereafter 100,685 
Total lease payments 424,473 
Less: imputed interest (45,163)
Total lease liabilities 379,310 
Less: current obligations (68,685)
Long-term lease obligations $ 310,625 
As of December 31, 2022, the Company has additional operating lease commitments that have not yet commenced of $1.5 million. These leases will commence in 2023 with lease terms of approximately three to six years.