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Lease Commitments (Tables)

3 Months Ended

May 03, 2025

The following is a schedule of the Company’s future lease payments:


	(in thousands)
Fiscal Year	Operating Leases			Finance Leases
2025 (remainder)	$	440,229			2,655
2026		663,457			3,640
2027		636,519			3,640
2028		594,208			3,447
2029		527,688			2,104
Thereafter		1,841,702			18,683
Total future minimum lease payments		4,703,803			34,169
Amount representing interest		(1,026,327	)		(9,725	)
Total lease liabilities		3,677,476			24,444
Less: current portion of lease liabilities		(397,550	)		(2,304	)
Total long term lease liabilities	$	3,279,926		$	22,140

Weighted average discount rate	6.1%			5.5%
Weighted average remaining lease term (years)		7.9			11.9

The above schedule excludes approximately $493.1 million for 73 stores the Company has committed to open or relocate but has not yet taken possession of the space. The discount rates used in valuing the Company’s leases are not readily determinable, and are based on the Company’s incremental borrowing rate on a fully collateralized basis.

Schedule of Net Lease Costs

The following is a schedule of net lease costs for the periods indicated:


	(in thousands)
	Three Months Ended
	May 3, 2025			May 4, 2024
Finance lease cost:
Amortization of finance lease asset (a)	$	566		$	798
Interest on lease liabilities (b)		337			383
Operating lease cost (c)		164,805			151,180
Variable lease cost (c)		67,662			60,957
Total lease cost		233,370			213,318
Impairment (gain) on sale and leaseback transaction (d)		(1,039	)		8,210
Less all rental income (e)		(1,303	)		(1,379	)
Total net rent expense (f)	$	231,028		$	220,149

(a)

Included in the line item “Depreciation and amortization” in the Company’s Condensed Consolidated Statements of Income.

(b)

Included in the line item “Interest expense” in the Company’s Condensed Consolidated Statements of Income.

(c)

Included in the line item “Selling, general and administrative expenses” in the Company’s Condensed Consolidated Statements of Income. Variable lease cost is primarily comprised of real estate taxes, common area maintenance, insurance and percentage rent.

(d)

Impairment included in the line item "Impairment charges - long-lived assets" and gain included in line item “Other income - net” in the Company’s Condensed Consolidated Statements of Income.

(e)

Included in the line item “Other revenue” in the Company’s Condensed Consolidated Statements of Income.

(f)

Excludes an immaterial amount of short-term lease cost.

Schedule of Supplemental Cash Flow Disclosures Related to Leases

Supplemental cash flow disclosures related to leases are as follows:


	(in thousands)
	Three Months Ended
	May 3, 2025		May 4, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Cash payments arising from operating lease liabilities (a)	$	166,807	$	155,077
Cash payments for the principal portion of finance lease liabilities (b)	$	536	$	884
Cash payments for the interest portion of finance lease liabilities (a)	$	337	$	383
Supplemental non-cash information:
Operating lease liabilities arising from obtaining right-of-use assets	$	141,257	$	141,534

(a)

Included within operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.

(b)

Included within financing activities in the Company’s Condensed Consolidated Statements of Cash Flows.