Leases

3 Months Ended

Mar. 31, 2022

The Company enters into operating leases domestically and internationally to lease certain warehouse space, office facilities, space for its Brand and Factory House stores, and certain equipment under non-cancelable operating leases. The leases expire at various dates through 2035, excluding extensions at the Company's option, and include provisions for rental adjustments. Short-term lease payments were not material for the three months ended March 31, 2022 and 2021.

Lease Costs and Other Information

The Company recognizes lease expense on a straight-line basis over the lease term.

The following table illustrates operating and variable lease costs, included in selling, general and administrative expenses within the Company's Consolidated Statements of Operations, for the periods indicated:


	Three months ended March 31,
	2022		2021
Operating lease costs	$	36,699	$	34,935
Variable lease costs	$	3,759	$	2,920

There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. The Company rents or subleases excess office facilities and warehouse space to third parties. Sublease income is not material.

The weighted average remaining lease term and discount rate for the periods indicated below were as follows:


	As of March 31, 2022		As of December 31, 2021		As of March 31, 2021
Weighted average remaining lease term (in years)	8.69		8.73		9.05
Weighted average discount rate	3.72	%	3.72	%	3.82	%

Supplemental Cash Flow Information

The following table presents supplemental information relating to cash flow arising from lease transactions:


	Three months ended March 31,
	2022		2021
Operating cash outflows from operating leases	$	43,903	$	45,909
Leased assets obtained in exchange for new operating lease liabilities	$	(892)	$	4,074

Maturity of Lease Liabilities

The following table presents the future minimum lease payments under the Company's operating lease liabilities as of March 31, 2022:


Fiscal year ending March 31,
2023	$	165,333
2024	141,401
2025	119,869
2026	88,897
2027	70,360
2028 and thereafter	363,083
Total lease payments	$	948,943
Less: Interest	145,127
Total present value of lease liabilities	$	803,816

As of March 31, 2022, the Company has additional operating lease obligations that have not yet commenced of approximately $11.8 million, which are not reflected in the table above.