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Leases
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases Leases
The Company leases warehouse space, office facilities, space for its brand and factory house stores and certain equipment under non-cancelable operating leases. The leases expire at various dates through 2035, excluding extensions at the Company's option, and include provisions for rental adjustments.
Right-of-use assets and lease liabilities are established on the unaudited consolidated balance sheets for leases with an expected term greater than one year. As the rate implicit in the lease is not readily determinable, the Company uses its secured incremental borrowing rate to determine the present value of the lease payments. Leases with an initial term of 12 months or less are not recorded on the unaudited consolidated balance sheets.
The Company recognizes lease expense on a straight-line basis over the lease term. Included in selling, general and administrative expenses were operating lease costs of $37.6 million and $113.4 million for the three and nine months ended September 30, 2019, respectively, under non-cancelable operating lease agreements.
Variable lease payments primarily consist of payments dependent on sales in brand and factory house stores. Short-term and variable lease payments are recorded in selling, general, and administrative expenses and are not material. There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. The Company rents or subleases excess office facilities and warehouse space to third parties. Sublease income is not material.
Supplemental balance sheet information related to leases was as follows:
September 30, 2019
Weighted average remaining lease term (in years)6.96
Weighted average discount rate4.29 %
Supplemental cash flow and other information related to leases was as follows:
(In thousands)Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases$83,183  
Leased assets obtained in exchange for new operating lease liabilities47,832  
Maturities of lease liabilities are as follows:
(In thousands)
2019$44,134  
2020141,983  
2021128,259  
2022116,370  
2023103,477  
2024 and thereafter295,916  
Total lease payments$830,139  
Less: Interest122,203  
Total present value of lease liabilities$707,936  
As of September 30, 2019, the Company has additional operating lease obligations that have not yet commenced of approximately $344.1 million, which are not reflected in the table above. These relate to retail store lease obligations commencing in 2020 with lease terms up to 15 years, and primarily relate to a flagship store.
The following is a schedule of future minimum lease payments for non-cancelable real property and equipment operating leases as of December 31, 2018, as well as significant operating lease agreements entered into during the period after December 31, 2018 through the date of the 2018 Form 10-K:
(In thousands)
2019$142,648  
2020148,171  
2021154,440  
2022141,276  
2023128,027  
2024 and thereafter699,262  
Total future minimum lease payments$1,413,824