Leases (Notes)

6 Months Ended

Jun. 30, 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 June 30, 2024 and December 31, 2023:


	Classification on the Balance Sheet	June 30, 2024			December 31, 2023
Assets
Noncurrent(1)	Operating lease right-of-use asset	$	143,480		$	122,783

Liabilities
Current	Operating leases – current portion	$	44,961		$	40,342
Noncurrent	Operating leases – long-term portion	112,988			98,536
Total operating lease liabilities		$	157,949		$	138,878

Weighted-average remaining lease term		4.7 years			4.5 years
Weighted-average discount rate		5.2		%	5.1		%

(1) During the three and six months ended June 30, 2023, the Company recorded a pre-tax impairment charge related to its right-of-use assets of $0 and $95, recorded in the Wholesale Footwear Segment.

Lease Costs

The following table presents the composition of lease costs during the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease cost	$	11,802	$	10,565	$	23,311	$	19,703
Variable lease cost	952		1,107		1,582		1,846

Less: sublease income	—		66		64		132
Total lease cost	$	12,754	$	11,606	$	24,829	$	21,417

Other Information

The following table presents supplemental cash and non-cash information related to the Company's operating leases during the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	12,326	$	11,379	$	24,086	$	21,393
Noncash transactions
Right-of-use asset obtained in exchange for new operating lease liabilities	$	26,692	$	14,061	$	42,720	$	44,589
Right-of-use asset amortization expense(1)	$	10,676	$	9,691	$	22,023	$	17,887

(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 June 30, 2024:


2024 (remaining six months)	$	25,137
2025	45,714
2026	36,627
2027	25,147
2028	18,213
Thereafter	28,325
Total minimum lease payments	179,163
Less: interest	21,214
Total lease liabilities	$	157,949