Lease Obligations

9 Months Ended

Sep. 30, 2025

Lease Obligations

Lease Obligations

8. Lease Obligations

The following table presents certain information related to the costs for leases where the Company is the lessee (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating lease cost	$	28,951	$	28,999	$	87,727	$	87,483
Finance lease cost:
Amortization of finance lease assets		2,703		2,788		8,011		8,484
Interest on finance lease liabilities		2,161		2,233		6,583		7,079
Short-term lease cost		225		562		808		1,398
Variable lease cost		6,701		6,422		18,560		19,312
Sublease income		(922)		(893)		(2,650)		(2,464)
Net lease costs	$	39,819	$	40,111	$	119,039	$	121,292

As of September 30, 2025, December 31, 2024, and September 30, 2024, finance lease assets of $116.5 million, $120.0 million, and $122.7 million, respectively, were included in property and equipment, net in the accompanying condensed consolidated balance sheets.

The following table presents supplemental cash flow information related to leases (in thousands):

	Nine Months Ended September 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	90,571	$	89,213
Operating cash flows for finance leases		6,577		7,079
Financing cash flows for finance leases		5,540		5,684
Lease assets obtained in exchange for lease liabilities:
New, remeasured and terminated operating leases		22,299		62,520
New, remeasured and terminated finance leases		4,507		30,771

During the nine months ended September 30, 2025 and 2024, the Company entered into sale-leaseback transactions for three properties each period associated with store locations in the RV and Outdoor Retail segment and received consideration of $40.2 million and $37.7 million of cash, respectively. The Company recorded a gain of $0.1 million and $0.4 million for the nine months ended September 30, 2025 and September 30, 2024, respectively, that was included in (gain) loss on sale or disposal of assets in the condensed consolidated statements of operations. The Company entered into lease agreements for the properties as the lessee with each of the buyers with lease terms ranging from 17 to 20 years.