8. LEASES
The right-of-use assets and corresponding liabilities related to the Company's operating leases were as follows:
| | | | | | | | | | | |
| December 31, |
| 2024 | | 2023 |
| Operating leases right-of-use assets, net | $ | 34,453 | | | $ | 39,933 | |
| | | |
| Current maturities of operating lease liability | 7,398 | | | 8,021 | |
| Operating lease liability, net of current maturities | 29,633 | | | 34,448 | |
| Total lease liability | $ | 37,031 | | | $ | 42,469 | |
The weighted-average remaining lease terms and weighted-average discount rates for operating leases were as follows:
| | | | | | | | | | | |
| December 31, |
| 2024 | | 2023 |
| Weighted average remaining lease term | 5.5 years | | 6.0 years |
| Weighted average discount rate | 6.2 | % | | 6.1 | % |
The components of lease costs were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2024 | | 2023 | | 2022 |
| Operating lease costs | $ | 9,880 | | | $ | 11,248 | | | $ | 10,936 | |
| Variable lease costs | 2,126 | | 2,559 | | 2,428 | |
| Short-term lease costs | 373 | | 268 | | 451 | |
| Sublease income | (1,420) | | | (1,148) | | | (86) | |
| Total operating lease costs | $ | 10,959 | | | $ | 12,927 | | | $ | 13,729 | |
In conjunction with the Company's restructuring activities as discussed in Note 17, Restructuring, the Company assessed and impaired the right-of-use assets of certain closed retail locations, which resulted in an impairment loss of $0.2 million in the year ended December 31, 2024. Refer to Note 17, Restructuring, for additional information on the restructuring activities. The Company also identified a $0.1 million impairment related to its operating lease right-of-use assets for the year ended December 31, 2023, which is included in Impairment loss on the Consolidated Statements of Operations.
Future maturities of the Company's operating lease liabilities and receipts from subleases as of December 31, 2024 were as follows:
| | | | | | | | | | | |
| Lease Payments | | Sublease Receipts |
| 2025 | $ | 9,420 | | | $ | (1,187) | |
| 2026 | 8,208 | | | (1,222) | |
| 2027 | 6,455 | | | (1,257) | |
| 2028 | 6,022 | | | (1,294) | |
| 2029 | 5,425 | | | (1,332) | |
| Thereafter | 8,170 | | | (1,470) | |
| Total lease payments (receipts) | 43,700 | | | (7,762) | |
| Less: imputed interest | (6,669) | | | |
| Operating lease liability as of December 31, 2024 | $ | 37,031 | | | |
Supplemental and other information related to leases was as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2024 | | 2023 | | 2022 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flow from operating leases | $ | 10,024 | | | $ | 11,139 | | | $ | 10,328 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.