The Company enters into operating leases domestically and internationally for certain 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 2038. Short-term lease payments were not material for the periods presented.

The Company recognizes lease expense on a straight-line basis over the lease term. There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. Operating and variable lease costs are included on the Company's Condensed Consolidated Statements of Operations within (i) selling, general and administrative expenses, (ii) restructuring charges, for certain operating and variable lease costs relating to restructured facilities; and (iii) other income (expense), for certain operating and variable lease costs relating to lease assets held for sublet purposes and other non-operational facilities. The following table presents total operating and variable lease costs for the periods indicated:

The Company subleases certain excess office facilities, retail space and warehouse space to third parties. Sublease income for the three months ended June 30, 2026 was $2.5 million (three months ended June 30, 2025: $3.4 million).

The weighted average remaining lease term and discount rate for the periods indicated below were as follows:


	June 30, 2026		March 31, 2026
Weighted average remaining lease term (in years)	6.36		6.38
Weighted average discount rate	5.03	%	4.85	%

The following table presents supplemental information relating to cash flows arising from lease transactions:


	Three Months Ended June 30,
	2026		2025
Operating cash outflows from operating leases	$	49,757	$	43,200
Leased assets obtained in exchange for new operating lease liabilities	$	76,405	$	9,930


Fiscal year ending March 31,
2027 (nine months ending)	$	140,328
2028	174,719
2029	140,986
2030	112,750
2031	83,586
2032 and thereafter	259,569
Total lease payments	$	911,938
Less: Interest	127,019
Total present value of lease liabilities	$	784,919

As of June 30, 2026, the Company has additional operating lease obligations that have not yet commenced of approximately $7.2 million, which are not reflected in the table above.