Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

The components of lease cost consisted of the following:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Operating lease cost	$	76,650	$	71,996	$	104,906
Variable lease cost	63,537		67,745		58,391
Short term lease cost	5,775		5,612		9,600
	$	145,962	$	145,353	$	172,897

For the year ended December 31, 2022, operating lease costs included $0.8 million of ROU asset impairment charges related to underperforming retail locations, as well as a gain of $4.8 million from the completion of lease termination negotiations and settlements related to certain retail store closures in 2020 and 2022, primarily in the U.S. segment. For the year ended December 31, 2021, operating lease costs included $0.5 million of ROU asset impairment charges related to underperforming retail locations primarily in the EMEA. segment, as well as a gain of $8.6 million from the completion of lease termination negotiations and settlements related to certain 2020 retail store closures, primarily in the U.S. segment. For the year ended December 31, 2020, operating lease cost included $16.5 million of accelerated amortization for retail locations that permanently closed during 2020 for which the related lease liabilities had not been extinguished as of December 31, 2020 due to ongoing negotiations with the landlords. In addition, for the year ended December 31, 2020, operating lease cost included $7.0 million of ROU asset impairment charges related to underperforming retail locations primarily in the U.S. segment for the year ended December 31, 2020.

In the periods presented, lease concessions reducing variable lease expense were not material.

The following table presents supplemental cash flow information related to leases:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	81,130	$	83,827	$	82,083
Operating lease liabilities arising from obtaining ROU assets(1)	$	51,976	$	53,168	$	22,416
Reductions to ROU assets resulting from reductions to operating lease liabilities	$	52	$	118	$	6,400

(1) Includes amounts added to the carrying amount of lease liabilities resulting from lease modifications and reassessments.

The following table presents supplemental balance sheet information related to leases:

	December 31,
	2022		2021
Weighted average remaining lease term	6.02 years		5.72 years
Weighted average discount rate	4.21	%	3.25	%

The following table presents the future maturities of lease liabilities as of December 31, 2022:

(in thousands)
2023	$	79,832
2024	73,958
2025	64,814
2026	57,184
2027	48,000
Thereafter	100,685
Total lease payments	424,473
Less: imputed interest	(45,163)
Total lease liabilities	379,310
Less: current obligations	(68,685)
Long-term lease obligations	$	310,625

As of December 31, 2022, the Company has additional operating lease commitments that have not yet commenced of $1.5 million. These leases will commence in 2023 with lease terms of approximately three to six years.