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Leases | 6 Months Ended
--- | ---
Jun. 30, 2019
Leases [Abstract] |
Leases | Note 2. Leases The Company leases office space, manufacturing plants, warehouses, distribution centers and vehicles and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. Certain real estate leases include one or more options to renew, with renewal terms that can extend the lease term for up to eight years. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the rate implicit in the lease contract in determining the present value of lease payments. If the implicit rate is not provided, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For vehicle leases, the Company accounts for the lease and non-lease components as a single lease component. In addition, select lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Supplemental balance sheet information related to leases is as follows (in thousands):
| Balance Sheet Location |  | June 30, 2019
Operating leases |  |  |
ROU assets, net | Operating lease ROU assets, net |  | $ | 167,585 |
Lease liabilities, short-term | Operating lease liabilities, short-term |  | $ | 27,253 |
Lease liabilities, long-term | Operating lease liabilities, long-term |  | $ | 143,717 |
Finance Leases |  |  |
ROU assets, net, | Other assets |  | $ | 1,504 |
Lease liabilities, short-term | Accounts payable and accrued expenses |  | $ | 663 |
Lease liabilities, long-term | Long-term other |  | $ | 829 |
The components of lease expense are as follows (in thousands):
| Three Months Ended June 30, 2019 |  | Six Months Ended June 30, 2019
Operating lease costs |  | $ | 10,702 |  |  |  |  | $ | 19,599 |  |
Financing lease costs: |  |  |  |  |  |  |
Amortization of right-of-use assets |  | 220 |  |  |  |  | 477 |  |
Interest on lease liabilities |  | 30 |  |  |  |  | 55 |  |
Total financing lease costs |  | 250 |  |  |  |  | 532 |  |
Variable lease costs |  | 846 |  |  |  |  | 2,186 |  |
Total lease costs |  | $ | 11,798 |  |  |  |  | $ | 22,317 |  |
Other information related to leases was as follows (in thousands):
Supplemental Cash Flows Information |  | June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows from operating leases |  | $ | 20,100 |
Operating cash flows from finance leases |  | $ | 55 |
Financing cash flows from finance leases |  | $ | 232 |
Lease liabilities arising from new ROU assets: |  |
Operating leases |  | $ | 7,679 |
Finance leases |  | $ | 81 |
Weighted average remaining lease term (years): |  |
Operating leases |  | 9.5 |
Finance leases |  | 2.7 |
Weighted average discount rate: |  |
Operating leases |  | 5.7 | %
Finance leases |  | 4.6 | %
Future minimum lease obligations as of June 30, 2019 were as follows (in thousands):
| Operating Leases |  | Finance Leases
Remainder of 2019 | $ | 19,837 |  |  | $ | 494 |
2020 | 33,476 |  |  | 606 |
2021 | 27,911 |  |  | 217 |
2022 | 23,166 |  |  | 176 |
2023 | 20,457 |  |  | 71 |
Thereafter | 99,478 |  |  | 5 |
Total future lease payments | 224,325 |  |  | 1,569 |
Less: imputed interest | 53,355 |  |  | 77 |
Total | $ | 170,970 |  |  | $ | 1,492 |
Leases | Note 2. Leases The Company leases office space, manufacturing plants, warehouses, distribution centers and vehicles and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. Certain real estate leases include one or more options to renew, with renewal terms that can extend the lease term for up to eight years. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the rate implicit in the lease contract in determining the present value of lease payments. If the implicit rate is not provided, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For vehicle leases, the Company accounts for the lease and non-lease components as a single lease component. In addition, select lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Supplemental balance sheet information related to leases is as follows (in thousands):
| Balance Sheet Location |  | June 30, 2019
Operating leases |  |  |
ROU assets, net | Operating lease ROU assets, net |  | $ | 167,585 |
Lease liabilities, short-term | Operating lease liabilities, short-term |  | $ | 27,253 |
Lease liabilities, long-term | Operating lease liabilities, long-term |  | $ | 143,717 |
Finance Leases |  |  |
ROU assets, net, | Other assets |  | $ | 1,504 |
Lease liabilities, short-term | Accounts payable and accrued expenses |  | $ | 663 |
Lease liabilities, long-term | Long-term other |  | $ | 829 |
The components of lease expense are as follows (in thousands):
| Three Months Ended June 30, 2019 |  | Six Months Ended June 30, 2019
Operating lease costs |  | $ | 10,702 |  |  |  |  | $ | 19,599 |  |
Financing lease costs: |  |  |  |  |  |  |
Amortization of right-of-use assets |  | 220 |  |  |  |  | 477 |  |
Interest on lease liabilities |  | 30 |  |  |  |  | 55 |  |
Total financing lease costs |  | 250 |  |  |  |  | 532 |  |
Variable lease costs |  | 846 |  |  |  |  | 2,186 |  |
Total lease costs |  | $ | 11,798 |  |  |  |  | $ | 22,317 |  |
Other information related to leases was as follows (in thousands):
Supplemental Cash Flows Information |  | June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows from operating leases |  | $ | 20,100 |
Operating cash flows from finance leases |  | $ | 55 |
Financing cash flows from finance leases |  | $ | 232 |
Lease liabilities arising from new ROU assets: |  |
Operating leases |  | $ | 7,679 |
Finance leases |  | $ | 81 |
Weighted average remaining lease term (years): |  |
Operating leases |  | 9.5 |
Finance leases |  | 2.7 |
Weighted average discount rate: |  |
Operating leases |  | 5.7 | %
Finance leases |  | 4.6 | %
Future minimum lease obligations as of June 30, 2019 were as follows (in thousands):
| Operating Leases |  | Finance Leases
Remainder of 2019 | $ | 19,837 |  |  | $ | 494 |
2020 | 33,476 |  |  | 606 |
2021 | 27,911 |  |  | 217 |
2022 | 23,166 |  |  | 176 |
2023 | 20,457 |  |  | 71 |
Thereafter | 99,478 |  |  | 5 |
Total future lease payments | 224,325 |  |  | 1,569 |
Less: imputed interest | 53,355 |  |  | 77 |
Total | $ | 170,970 |  |  | $ | 1,492 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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