Leases and Commitments

12 Months Ended

Dec. 31, 2020

Leases and Commitments [Abstract]

Leases and Contingencies

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, 2020 and 2019, respectively, or for the years then ended.

Our leases relating to office and warehouse space have terms of 19 months to 122 months. Our leases relating to equipment have lease terms of 24 to 203 months, with certain of them having clauses relating to automatic renewal.

The Company’s warehouse agreements also contain 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.

The operating lease expense was $3.6 million and $3.1 million for the years ended December 31, 2020 and 2019, respectively.

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

	2020		2019
Cash paid for amounts included in the measurements of lease liabilities
Operating cash flow used in operating leases	$	3,775	$	3,025
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	887	$	3,489

As of December 31, 2020, the weighted average remaining lease term was 3.7 years and the weighted average discount rate was 3.5%.

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2020 (in thousands):

2021	$	3,991
2022		3,397
2023		1,851
2024		1,234
2025		1,248
Thereafter		203
Total lease payments	$	11,924
Less: imputed interest		(763)
Total	$	11,161

Unconditional purchase obligations:

At December 31, 2020, the Company had $41.6 million in unconditional purchase obligations primarily for inventories, outsourced information technology and Coach events.