Leases

3 Months Ended

Apr. 30, 2023

The Company leases all of its fulfillment and customer service centers and corporate offices under non-cancelable operating lease agreements. The terms of the Company’s real estate leases generally range from 5 to 15 years and typically allow for the leases to be renewed for up to three additional five-year terms. Fulfillment and customer service centers and corporate office leases expire at various dates through 2034, excluding renewal options. The Company also leases certain equipment under operating and finance leases. The terms of equipment leases generally range from 3 to 5 years and do not contain renewal options. These leases expire at various dates through 2025.

The Company’s finance leases as of April 30, 2023 and January 29, 2023 were not material and were included in property and equipment, net, on the Company’s condensed consolidated balance sheets.

The table below presents the operating lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in thousands):


		As of
Leases	Balance Sheet Classification	April 30, 2023		January 29, 2023
Assets
Operating	Operating lease right-of-use assets	$	447,581	$	423,423
Total operating lease assets		$	447,581	$	423,423

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	27,825	$	27,611
Non-current
Operating	Operating lease liabilities	500,578		471,765
Total operating lease liabilities		$	528,403	$	499,376

For the thirteen weeks ended April 30, 2023 and May 1, 2022, assets acquired in exchange for new operating lease liabilities were $33.7 million and $8.9 million, respectively. Lease expense primarily relates to operating lease costs. Lease expense for the thirteen weeks ended April 30, 2023 and May 1, 2022 was $26.1 million and $21.3 million, respectively. The aforementioned lease expense was included within selling, general and administrative expenses in the condensed consolidated statements of operations.

Cash flows used in operating activities related to operating leases were approximately $21.1 million and $18.6 million for the thirteen weeks ended April 30, 2023 and May 1, 2022, respectively.