Leases

3 Months Ended

Mar. 31, 2024

LEASES

The 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 costs were as follows (in thousands):


		Three Months Ended March 31,
	Classification	2024		2023
Operating lease costs	Selling, general and administrative expense	$	1,855	$	1,553
Operating lease costs	Cost of sales	68		—
Variable lease costs	Selling, general and administrative expense	329		265
Variable lease costs	Cost of sales	34		—
Total lease costs		$	2,286	$	1,818

The maturity analysis of the operating lease liabilities as of March 31, 2024 was as follows (in thousands):


	Amount
For the remainder of the year ending December 31, 2024	$	5,462
Years ending December 31,
2025	8,472
2026	8,249
2027	6,896
2028	5,897
2029	5,054
Thereafter	12,273
Total minimum lease payments(1)	52,303
Less: imputed interest	(9,669)
Net present value of operating lease liabilities	42,634
Less: current portion	(5,372)
Long-term portion	$	37,262

(1) Future minimum lease payments exclude $4.6 million of future payments required under signed lease agreements that has not yet commenced. These operating leases will commence after March 31, 2024 with a lease term of five to seven years.

The weighted-average remaining lease term and weighted-average discount rate on long-term leases was as follows:


	March 31,		March 31,
	2024		2023
Weighted-average remaining lease term - operating leases	7.0 years		7.5 years
Weighted-average discount rate - operating leases	5.6	%	4.5	%

Cash paid for amounts included in the measurement of lease liabilities was $1.9 million and $1.3 million for the three months ended March 31, 2024 and 2023, respectively.