Leases

9 Months Ended

Sep. 30, 2023

LEASESThe Company leases its executive offices, retail showrooms, office and operational locations under operating leases. The fixed, non-cancelable terms of our real estate leases are generally 5-10 years. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. Most of the real estate leases require payment of real estate taxes, insurance and certain common area maintenance costs in addition to future minimum lease payments.

Total operating lease ROU assets and lease liabilities were as follows (in thousands):


Assets	Classification	As of September 30, 2023		As of September 30, 2022
Operating ROU assets at cost	Operating lease right of use assets	$	42,175	$	25,136
Accumulated amortization	Operating lease right of use assets	(6,716)		(2,272)
Net book value		$	35,459	$	22,864

Liabilities	Classification	As of September 30, 2023		As of September 30, 2022
Current:
Operating leases	Current portion of operating lease liabilities	$	4,866	$	3,321
Noncurrent:
Operating leases	Operating lease liabilities	37,066		23,166
Total lease liabilities		$	41,932	$	26,487

Total operating lease costs were as follows (in thousands):


	Classification	Three months ended September 30, 2023		Three months ended September 30, 2022		Nine months ended September 30, 2023		Nine months ended September 30, 2022
Operating lease costs	Selling, general and administrative expense	$	1,789	$	1,089	$	5,141	$	3,067
Variable lease costs	Selling, general and administrative expense	343		—		936		—
Total lease costs		$	2,132	$	1,089	$	6,077	$	3,067

The maturity analysis of the operating lease liabilities as of September 30, 2023 was as follows (in thousands):


	Amount
For the remainder of the year ending December 31, 2023	$	1,319
Years ending December 31,
2024	7,720
2025	7,769
2026	7,525
2027	6,147
2028	5,127
Thereafter	16,126
Total minimum lease payments	51,733
Less: imputed interest	(9,801)
Net present value of operating lease liabilities	41,932
Less: current portion	(4,866)
Long-term portion	$	37,066

The table summarizes the weighted-average remaining lease term and weighted-average discount rate on long-term leases as follows (in thousands):


	September 30, 2023			September 30, 2022
Weighted-average remaining lease term - operating leases	7.3 years			5.9 years
Weighted-average discount rate - operating leases	5.5		%	4.3		%

Supplemental cash flow information related to operating leases is as follows:
Cash paid for amounts included in the measurement of lease liabilities	$	2,927		$	3,393
ROU assets obtained in exchange for new operating lease liabilities	$	12,449		$	5,963