Leases

9 Months Ended

Oct. 30, 2021

The Company determines if an arrangement contains a lease at the inception of a contract. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

In response to the COVID-19 pandemic, certain of the Company's landlords agreed to temporary rent concessions. These rent concessions generally related to deferrals and abatements of certain rent payments due between April 2020 through October 2020 into future periods.

In accordance with the Financial Accounting Standards Board's staff guidance regarding rent concessions related to the effects of the COVID-19 pandemic, the Company has elected to account for the concessions agreed to by landlords that do not result in a substantial increase in the obligations of the lessee as if the enforceable rights and obligations for those concessions existed in the original lease agreements and the Company has elected to not remeasure the related lease liabilities and right-of-use assets. For qualifying rent abatement concessions, the Company has recorded negative variable lease expense for the amount of the concession during the period of relief, and for qualifying deferrals of rental payments, the Company has recognized a non-interest bearing payable in lieu of recognizing a decrease in cash for the lease payment that would have been made based on the original terms of the lease agreement, which will be reduced when the deferred payment is made in the future.

During the thirteen weeks ended October 30, 2021, the Company committed to 30 new store leases with average terms of approximately 10 years that have future minimum lease payments of approximately $89.6 million.

All of the Company's leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. As of October 30, 2021 and October 31, 2020, the weighted average remaining lease term for the Company's operating leases was 7.9 years and 8.0 years, respectively, and the weighted average discount rate was 5.6% and 6.6%, respectively.

The following table is a summary of the Company's components for net lease costs (in thousands):


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
Lease Cost	October 30, 2021		October 31, 2020		October 30, 2021		October 31, 2020
Operating lease cost	$	51,477	$	43,584	$	148,272	$	126,205
Variable lease cost	14,951		11,977		42,602		33,939
Net lease cost*	$	66,428	$	55,561	$	190,874	$	160,144

* Excludes short-term lease cost, which is immaterial.

The following table summarizes the maturity of lease liabilities under operating leases as of October 30, 2021 (in thousands):


Maturity of Lease Liabilities	Operating Leases
2021	$	58,337
2022	221,131
2023	215,265
2024	205,455
2025	190,448
After 2025	692,582
Total lease payments	1,583,218
Less: imputed interest	282,751
Present value of lease liabilities	$	1,300,467

The following table summarizes the supplemental cash flow disclosures related to leases (in thousands):


	Thirty-Nine Weeks Ended
	October 30, 2021		October 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Cash payments arising from operating lease liabilities (1)	$	144,030	$	91,013
Supplemental non-cash information:
Operating lease liabilities arising from obtaining right-of-use assets	$	266,717	$	159,707

(1) Included within operating activities in the Company's Consolidated Statements of Cash Flows.