LEASES

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

LEASES

LEASES

Right-of-Use Assets and Operating Lease Liabilities

Amounts reported in the condensed consolidated balance sheets were:

	March 31, 2023		December 31, 2022
	(in thousands)
Assets:
Right-of-use assets	$	233,981	$	239,905
Liabilities:
Current operating lease liabilities	$	57,560	$	57,456
Long-term operating lease liabilities	209,817		215,119
Total operating lease liabilities	$	267,377	$	272,575

Lease Costs and Other Information

Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statements of income were:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Operating lease cost	$	18,199	$	14,231
Short-term lease cost	3,042		2,632
Variable lease cost	5,548		4,552
Total lease costs	$	26,789	$	21,415

The weighted average remaining lease term and discount rate related to our lease liabilities as of March 31, 2023 were 6.7 years and 4.0%, respectively. As of March 31, 2022, the weighted average remaining lease term and discount rate related to our lease liabilities were 7.2 years and 3.6%, respectively.

Maturities

The maturities of our operating lease liabilities were:

	As of March 31, 2023
	(in thousands)
2023 (remainder of year)	$	45,707
2024	54,986
2025	41,082
2026	34,593
2027	29,672
Thereafter	100,166
Total future minimum lease payments	306,206
Less: imputed interest	(38,829)
Total operating lease liabilities	$	267,377

Leases That Have Not Yet Commenced

As of March 31, 2023, we had significant obligations for a lease not yet commenced related to a new HEYDUDE distribution center in Las Vegas, Nevada. The total contractual commitment related to the lease, with payments expected to begin in the third quarter of 2023 and continue through December 2033, is approximately $111 million.