Leases

12 Months Ended

Dec. 31, 2021

The Company is obligated under operating leases primarily for its warehouse, distribution and office space in Grapevine, Texas, expiring in March 2029, and warehouse and distribution space in Salt Lake City, Utah, expiring September 2025. The Company is also obligated through April 2026 for warehouse and distribution space in Elizabethtown, Pennsylvania, and warehouse and office space in Rotterdam, Netherlands expiring in October 2026. Chubbies, ISLE, and Oru maintain operating leases for retail locations and office operations in Texas, California, Georgia, Florida, and Mexico, all of which expire during or prior to December 2024. These leases require the Company to pay taxes, insurance, utilities, and maintenance costs.

Total rent expense under these leases was $2.7 million in the Successor period for the year ended December 31, 2021. This amount was $0.2 million the Successor period from October 9, 2020 through December 31, 2020. In the Intermediate Successor period from January 1, 2020 through October 8, 2020, total rent expense was $0.6 million. Rent expense is included in selling, general, & administrative expenses on the consolidated statements of operations. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.

The Company completed the move of its global headquarters from Southlake, Texas, to Grapevine, Texas, in the fourth quarter of 2021 and entered into a surrender agreement to terminate our existing lease in Southlake, Texas. The new lease will require the Company to pay certain operating expenses, including utilities, maintenance, repairs, and insurance.

Future minimum annual commitments under these operating leases are as follows:


Years Ending December 31	Amount
2022	$	4,877
2023	5,520
2024	5,268
2025	5,063
2026	3,969
Thereafter	5,943
Total minimum lease payments	$	30,640