XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases (Notes) | 9 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Lessee, Operating Leases [Text Block] | – Leases During the first quarter 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date as of January 1, 2019. Upon adoption, the Company recorded $194,100 for right-of-use asset and $209,000 for lease liabilities. The Company elected the package of three practical expedients. As such, the Company did not reassess whether expired or existing contracts are or contain a lease and did not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the hindsight practical expedient and the land easement practical expedient, neither of which are applicable to the Company. In addition, the Company has elected to take the practical expedient to not separate lease and non-lease components for all asset classes. The Company leases office space, sample production space, warehouses, showrooms, storage and retail stores under operating leases. The Company’s portfolio of leases is primarily related to real estate. Because most of its leases do not provide a readily determinable implicit rate, the Company estimated its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Certain of the leases for the Company’s retail store facilities provide for variable lease payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease and are therefore not included in the measurement of the right-of-use assets and lease liabilities. Under ASC 842, these variable lease costs are expensed as incurred. As a result of the effects of the COVID-19 pandemic, during the third quarter of 2020, the Company executed amendments to certain leases in its existing operating lease portfolio which included changes to rental payments either to be fully or partially based on the future sales volumes at the leased location. The Company considered these concessions in accordance with the FASB Staff Q&A—Topic 842 and Topic 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic (the “Lease Modification Q&A”), and determined that the concessions resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. Consequently, the Company elected to account for these concessions as if they were contemplated in the enforceable rights and obligations of the existing contract. Please see Note S for further information. The Company made payments amounting to $8,248 for COVID-19 lease amendments during the three and nine months ended September 30, 2020 which are included in variable lease costs. Lease Position The table below presents the lease-related assets and liabilities recorded on the balance sheet as of September 30, 2020 and December 31, 2019:
| Classification on the Balance Sheet |  | September 30, 2020 |  | December 31, 2019
Assets |  |  |  |  |
Noncurrent (1) (2) | Operating lease right-of-use asset |  | $ | 111,732 |  | $ | 155,700
Liabilities |  |  |  |  |
Current | Operating leases - current portion |  | $ | 36,212 |  | $ | 38,624
Noncurrent | Operating leases - long-term portion |  | 107,973 |  | 133,172
Total operating lease liabilities |  |  | $ | 144,185 |  | $ | 171,796
Weighted-average remaining lease term |  |  | 5.1 years |  | 5.5 years
Weighted-average discount rate |  |  | 4.4 | % |  | 4.4 | %
(1) During the first quarter of 2020, the Company recorded a pre-tax impairment charge related to the right-of-use assets of $16,826; during the second quarter of 2020, the Company recorded a pre-tax impairment charge related to the right-of-use assets of $1,161 and during the third quarter of 2020, the Company recorded a pre-tax impairment charge related to the right-of-use assets of $2,312. (2) During the third quarter of 2019, the Company recorded a pre-tax impairment charge related to the right-of-use assets of $1,883. Lease Costs The table below presents certain information related to lease costs during the three and nine months ended September 30, 2020 and 2019:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Operating lease cost | $ | 8,534 |  |  | $ | 12,259 |  |  | $ | 28,950 |  |  | $ | 35,160 |
Variable lease cost (1) | 8,448 |  |  | — |  |  | 8,448 |  |  | — |
Short-term lease cost | 94 |  |  | 163 |  |  | 213 |  |  | 179 |
Less: sublease income | 80 |  |  | 245 |  |  | 482 |  |  | 522 |
Total lease cost | $ | 16,996 |  |  | $ | 12,177 |  |  | $ | 37,129 |  |  | $ | 34,817 |
(1) The Company has incurred lease modification expenses of $8,248 which have been included in variable lease costs for the three and nine months ended September 30, 2020, respectively. Other Information The table below presents supplemental cash flow information related to leases as of the nine months ended September 30, 2020 and 2019:
| Nine Months Ended September 30,
| 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows used for operating leases | $ | 41,663 |  |  | $ | 35,251 |
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 balance sheet as of September 30, 2020:
2020 (remaining three months) | $ | 11,274 |
2021 | 40,554 |
2022 | 31,683 |
2023 | 22,277 |
2024 | 18,509 |
Thereafter | 36,691 |
Total minimum lease payments | 160,988 |
Less: interest | 16,803 |
Present value of lease liabilities | $ | 144,185 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration