Leases and Commitments

12 Months Ended

Dec. 31, 2019

Leases and Commitments [Abstract]

Leases and Commitments

12. LEASES AND COMMITMENTS

Operating Leases:

The Company has operating leases for office and warehouse space and certain equipment. In certain of the Company’s lease agreements, the rental payments are adjusted periodically based on defined terms within the lease. The Company did not have any finance leases as of December 31, 2019 and for the twelve-month period then ended.

Our leases relating to office and warehouse space have terms of 36 months to 122 months. Our leases relating to equipment have lease terms of 60 to 203 months, with some of them having clauses relating to automatic renewal.

The Company’s warehouse agreement also contains non-lease components, in the form of payments towards variable logistics services and labor charges, which the Company is obligated to pay based on the services consumed by it. Such amounts are not included in the measurement of the lease liability but will be recognized as expense when they are incurred.

For the year ended December 31, 2019, expense associated with operating leases was $3.1 million.

Supplemental cash flow information related to the Company’s operating leases were as follows (in thousands):

	Year ended December 31, 2019
Cash paid for amounts included in the measurements of lease liabilities
Operating cash flow from operating leases	$	3,025
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	3,489

As of December 31, 2019, the weighted average remaining lease term was 4.5 years and the weighted average discount rate was 3.7%.

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2019 (in thousands):

2020	$	3,636
2021		3,670
2022		3,154
2023		1,665
2024		1,234
Thereafter		1,452
Total lease payments	$	14,811
Less: imputed interest		(1,210)
Total	$	13,601

As previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and under the previous lease accounting standard, future minimum lease commitments under non-cancelable operating leases with terms in excess of one year would have been as follows (in thousands):

2019	$	1,496
2020		1,528
2021		1,562
2022		1,222
2023		1,155
Thereafter		2,582
Total minimum lease payments	$	9,545

Unconditional purchase obligations:

At December 31, 2019, the Company had $4.8 million in unconditional purchase obligations primarily for outsourced information technology and Coach events.