Lease Obligations

3 Months Ended

Mar. 31, 2024

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 March 31,
	2024		2023
Operating lease cost	$	29,190	$	29,205
Finance lease cost:
Amortization of finance lease assets		2,860		(2,813)
Interest on finance lease liabilities		2,466		1,399
Short-term lease cost		377		514
Variable lease cost		5,329		6,289
Sublease income		(654)		(657)
Net lease costs	$	39,568	$	33,937

As of March 31, 2024, December 31, 2023, and March 31, 2023, finance lease assets of $139.8 million, $100.4 million, and $93.6 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):

	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	29,588	$	28,774
Operating cash flows for finance leases		2,466		1,395
Financing cash flows for finance leases		1,829		1,233
Lease assets obtained in exchange for lease liabilities:
New, remeasured and terminated operating leases		44,183		2,693
New, remeasured and terminated finance leases		42,228		7,700

During the three months ended March 31, 2024, the Company entered into sale-leaseback transactions for two properties associated with store locations in the RV and Outdoor Retail segment. The Company received consideration of $23.5 million of cash and recorded a gain of $0.1 million that is included in loss (gain) on sale or disposal of assets in the condensed consolidated statements of income for the three months ended March 31, 2024. The Company entered into a 20-year lease agreement as the lessee with each buyer of the properties.