Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

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LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
We lease certain retail stores, warehouses, distribution centers, office spaces and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We account for lease components including rent, real estate taxes and insurance costs separately from non-lease components, like common-area maintenance fees. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term for one or more years. The exercise of the lease option to renew is solely at our discretion.

Operating lease costs were approximately $5.4 million and $5.2 million for the years ended December 31, 2024 and 2023, respectively. Short-term lease costs were approximately $1.1 million and $1.0 million for the years ended December 31, 2024 and 2023, respectively. Operating lease costs were offset by sublease income of $0.3 million and $0.3 million for the years ended December 31, 2024 and 2023, respectively. Short-term lease costs represent our costs with respect to leases with a duration of 12 months or less and are not reflected on our Consolidated Balance Sheets.
Information related to the Company’s operating right-of-use assets and related operating lease liabilities were as follows (dollar amounts in thousands, except lease term and discount rate):
As of December 31, 2024 2023
Assets:
Operating lease right-of-use assets $ 12,799  $ 13,361 
Liabilities:
Current 3,927  4,547 
Long-term 10,277  10,376 
Total operating lease liabilities $ 14,204  $ 14,923 

Weighted-average remaining lease term 3.7 4.1
Weighted-average discount rate 5.01  % 4.15  %

Year Ended December 31, 2024 2023
Cash paid for operating lease liabilities $ 5,671  $ 5,504 
Right-of-use assets obtained in exchange for new operating lease obligations 5,181  1,184 
Cancellations or adjustments of leases that resulted in the reduction of lease assets in exchange for lease liabilities $ (103) $ (27)

There were no material operating leases that we have entered into and that were yet to commence as of December 31, 2024.

The approximate aggregate commitments under non-cancelable operating leases in effect at December 31, 2024, were as follows (dollar amounts in thousands):
Year Ending December 31,
2025 $ 4,519 
2026 4,098 
2027 3,482 
2028 2,970 
2029 517 
Total lease payments $ 15,586 
Less: Imputed interest (1) 1,382 
Present value of lease liabilities $ 14,204 

(1) Calculated using our corporate borrowing rate based on the term of each lease ranging from 3.00 percent to 6.96 percent.