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Leases

9 Months Ended

Sep. 30, 2023

LeasesThe Company leases retail, office, optical laboratory, and distribution center space under operating leases from third parties. As of September 30, 2023, the total lease terms of the various leases range from 1 to 11 years. The leases generally contain renewal options and rent escalation clauses, and from time to time include contingent rent provisions. Renewal options are exercisable at the Company’s sole discretion and are included in the lease term if they are reasonably certain to be exercised. In general it is not reasonably certain that lease renewals will be exercised at lease commencement and as such, lease renewals are not included in the lease term.

The following table presents the assets and liabilities related to the Company’s leases:


	September 30, 2023		December 31, 2022
Lease assets:
Right-of-use assets	$	120,359	$	127,014
Total lease assets	120,359		127,014

Lease liabilities:
Current lease liabilities	23,086		22,546
Non-current lease liabilities	147,096		150,832
Total lease liabilities	$	170,182	$	173,378

The following table details the Company’s net lease expense:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease expense	$	7,853	$	6,408	$	22,784	$	18,701
Variable lease expense(1)	359		920		1,607		2,794
Net lease expense	$	8,212	$	7,328	$	24,391	$	21,495

(1) Variable lease expense primarily consists of contingent rent.

The following table presents the future maturity of lease liabilities:


	Operating Leases(1)
2023	$	7,559
2024	33,661
2025	34,612
2026	33,782
2027	30,577
Thereafter	58,749
Future minimum lease payments	198,940
Impact of discounting	28,758
Present value of lease payments	$	170,182

(1) The year 2023 and 2024 include $2.6 million and $7.8 million of expected cash inflows from TIAs. Operating lease payments exclude $9.3 million of legally binding minimum lease payments related to executed leases for which the Company has not yet taken possession of the leased premises.

The following table presents other relevant lease information:


	September 30, 2023
Weighted average remaining lease term (years)	5.7
Weighted average discount rate	4.8	%