Leases (Notes)

3 Months Ended

Mar. 31, 2025

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 ASC Topic 842, these variable lease costs are expensed as incurred. The following table presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024:


	Balance Sheet Classification	March 31, 2025			December 31, 2024
Assets:
Noncurrent	Operating lease right-of-use asset	$	152,689		$	139,695

Liabilities:
Current	Operating leases – current portion	$	45,526		$	43,172
Noncurrent	Operating leases – long-term portion	120,730			109,816
Total operating lease liabilities		$	166,256		$	152,988

Weighted-average remaining lease term		4.7 years			4.5 years
Weighted-average discount rate		5.2		%	5.3		%

The following table presents the composition of lease costs during the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
	2025		2024
Operating lease cost	$	13,443	$	11,509
Variable lease cost	256		630
Less: sublease income	68		64
Total lease cost(1)	$	13,631	$	12,075

(1) Included in operating expenses in the Company's Condensed Consolidated Statements of Income.

The following table presents supplemental cash and non-cash information related to the Company's operating leases during the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases(1)	$	13,568	$	11,760
Noncash transactions
Right-of-use asset obtained in exchange for new operating lease liabilities	$	24,155	$	16,028
Right-of-use asset noncash lease expense(1)	$	11,161	$	11,347

(1) Included in leases and other liabilities in the Condensed Consolidated Statement of Cash Flows.

Future Minimum Lease Payments

The following table presents future minimum lease payments for each of the next five years and the total for the remaining years as of March 31, 2025:


2025 (remaining nine months)	$	40,472
2026	45,808
2027	34,018
2028	25,196
2029	14,749
Thereafter	27,841
Total minimum lease payments	188,084
Less: imputed interest	21,828
Total lease liabilities	$	166,256