XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
Leases (Notes)
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Supplemental Balance Sheet Disclosures
Lease Position
The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021:
 Classification on the Balance SheetSeptember 30, 2022December 31, 2021
Assets
Noncurrent (1)
Operating lease right-of-use asset$90,407$85,449
Liabilities
CurrentOperating leases – current portion$30,234$30,759
NoncurrentOperating leases – long-term portion79,90680,072
Total operating lease liabilities$110,140$110,831
Weighted-average remaining lease term4.2 years4.6 years
Weighted-average discount rate4.3 %4.3 %
(1) During the year ended December 31, 2021, the Company recorded a pre-tax impairment charge related to its lease right-of-use assets of $1,023 in the Direct-to-Consumer and its Wholesale Accessories/Apparel segments.
Lessee, Operating Leases [Text Block]
The Company leases office space, sample production space, warehouses, showrooms, storage units and retail stores, which are recorded under operating leases. The Company’s portfolio of leases is primarily related to real estate. Since most of its leases do not provide a readily determinable implicit rate, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement.

Some of the Company’s retail store leases 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 Topic 842, "Leases," these variable lease costs are expensed as incurred.

Lease Position
The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021:
 Classification on the Balance SheetSeptember 30, 2022December 31, 2021
Assets
Noncurrent (1)
Operating lease right-of-use asset$90,407$85,449
Liabilities
CurrentOperating leases – current portion$30,234$30,759
NoncurrentOperating leases – long-term portion79,90680,072
Total operating lease liabilities$110,140$110,831
Weighted-average remaining lease term4.2 years4.6 years
Weighted-average discount rate4.3 %4.3 %
(1) During the year ended December 31, 2021, the Company recorded a pre-tax impairment charge related to its lease right-of-use assets of $1,023 in the Direct-to-Consumer and its Wholesale Accessories/Apparel segments.
Lease Costs
The table below presents certain information related to lease costs during the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Operating lease cost $8,620 $9,118 $25,145 $28,384 
Variable lease cost (1)
1,774 1,937 5,428 14,818 
Less: sublease income66 80 257 241 
Total lease cost$10,328 $10,975 $30,316 $42,961 
(1) For the three and nine months ended September 30, 2021, the Company incurred expenses related to the COVID-19 lease amendments of $0 and $9,505, respectively, which were included in variable lease cost.
Other Information
The table below presents supplemental cash flow information related to leases during the nine months ended September 30, 2022 and 2021:
Nine Months Ended September 30,
20222021
Cash paid for amounts included in the measurement of lease liabilities
     Operating cash flows used for operating leases$29,379 $32,126 

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Noncash transactions
Right-of-use asset obtained in exchange for new operating lease liabilities13,460 2,388 $28,427 $12,992 
Right-of-use asset amortization expense8,411 8,493 $23,469 $24,256 
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 Consolidated Balance Sheet as of September 30, 2022:
2022 (remaining three months)$10,062 
202333,080 
202426,285 
202520,968 
202615,536 
Thereafter14,115 
Total minimum lease payments120,046 
Less: interest9,906 
Present value of lease liabilities$110,140