Leases (Notes)

3 Months Ended

Mar. 31, 2024

Note F – Leases

The Company leases office space, sample production space, warehouses, showrooms, storage units, and retail stores pursuant to 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 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, these variable lease costs are expensed as incurred.

Lease Position

The following table presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023:


	Classification on the Balance Sheet	March 31, 2024			December 31, 2023
Assets
Noncurrent(1)	Operating lease right-of-use asset	$	127,464		$	122,783

Liabilities
Current	Operating leases – current portion	$	40,020		$	40,342
Noncurrent	Operating leases – long-term portion	102,637			98,536
Total operating lease liabilities		$	142,657		$	138,878

Weighted-average remaining lease term		4.5 years			4.5 years
Weighted-average discount rate		5.2		%	5.1		%

(1) During the three months ended March 31, 2023, the Company recorded a pre-tax impairment charge related to its right-of-use assets of $95, recorded in the Wholesale Footwear Segment.

Lease Costs

The following table presents the composition of lease costs during the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	11,509	$	9,138
Variable lease cost	630		739

Less: sublease income	64		66
Total lease cost	$	12,075	$	9,811

Other Information

The following table presents supplemental cash and non-cash information related to the Company's operating leases during the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	11,760	$	10,014
Noncash transactions
Right-of-use asset obtained in exchange for new operating lease liabilities	$	16,028	$	30,528
Right-of-use asset amortization expense(1)	$	11,347	$	8,196

(1) Included in "Leases and other liabilities" in the Consolidated Statement of Cash Flows.

Future Minimum Lease Payments

The following table presents future minimum lease payments for each of the first five years and the total for the remaining years as of March 31, 2024:


2024 (remaining nine months)	$	35,155
2025	41,478
2026	31,779
2027	20,280
2028	13,351
Thereafter	18,530
Total minimum lease payments	160,573
Less: interest	17,916
Total lease liabilities	$	142,657