Lease Obligations

6 Months Ended

Jun. 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 June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease cost	$	29,423	$	29,294	$	58,776	$	58,484
Finance lease cost:
Amortization of finance lease assets		2,717		2,836		5,308		5,696
Interest on finance lease liabilities		2,240		2,380		4,422		4,846
Short-term lease cost		275		459		583		836
Variable lease cost		5,155		7,561		11,859		12,890
Sublease income		(882)		(917)		(1,728)		(1,571)
Net lease costs	$	38,928	$	41,613	$	79,220	$	81,181

As of June 30, 2025, December 31, 2024, and June 30, 2024, finance lease assets of $127.5 million, $120.0 million, and $125.5 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):

	Six Months Ended June 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	40,833	$	59,338
Operating cash flows for finance leases		4,422		4,846
Financing cash flows for finance leases		3,637		3,695
Lease assets obtained in exchange for lease liabilities:
New, remeasured and terminated operating leases		6,329		52,715
New, remeasured and terminated finance leases		12,768		30,771

During the six months ended June 30, 2025 and 2024, the Company entered into sale-leaseback transactions for one and two properties, respectively, associated with store locations in the RV and Outdoor Retail segment and received consideration of $3.5 million and $23.5 million of cash, respectively. The Company recorded no gain for the six months ended June 30, 2025 and recorded a gain of $0.1 million for the six months ended June 30, 2024 that was included in (gain) loss on sale or disposal of assets in the condensed consolidated statements of income. The Company entered into a 19-year lease agreement as the lessee with the buyer of the property in 2025, and 20-year lease agreements as the lessee with each buyer of the properties in 2024.