Leases

6 Months Ended

Jul. 27, 2024

We lease the majority of our office facilities as well as certain equipment, all of which are accounted for as operating leases. These leases have remaining terms ranging from less than 1 year to approximately 6 years. Some leases include options to extend the lease for up to 5 years and others include options to terminate.

The following table summarizes the components of lease cost recognized in the condensed consolidated statements of operations for the three and six months ended July 27, 2024 and July 29, 2023 (dollars in thousands):


	For the Three Months Ended				For the Six Months Ended
	July 27, 2024		July 29, 2023		July 27, 2024		July 29, 2023
Lease cost under long-term operating leases	$	10,903	$	9,351	$	21,364	$	18,631
Lease cost under short-term operating leases	4,386		6,030		8,380		11,916
Variable lease cost under short-term and long-term operating leases(1)	913		1,028		2,005		2,150
Total lease cost	$	16,202	$	16,409	$	31,749	$	32,697

(1) Variable lease cost primarily includes insurance, maintenance, and other operating expenses related to our leased office facilities.

Our operating lease liabilities related to long-term operating leases were $79.5 million as of July 27, 2024 and $76.1 million as of January 27, 2024. Supplemental balance sheet information related to these liabilities is as follows:


	July 27, 2024		January 27, 2024
Weighted average remaining lease term	2.8 years		2.8 years
Weighted average discount rate	5.4	%	5.0	%

Supplemental cash flow information related to our long-term operating lease liabilities for the three and six months ended July 27, 2024 and July 29, 2023 is as follows (dollars in thousands):


	For the Three Months Ended				For the Six Months Ended
	July 27, 2024		July 29, 2023		July 27, 2024		July 29, 2023
Cash paid for amounts included in the measurement of lease liabilities	$	11,458	$	10,125	$	20,886	$	18,612
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	9,336	$	8,676	$	22,922	$	22,611

As of July 27, 2024, maturities of our lease liabilities under our long-term operating leases for the next five fiscal years and thereafter are as follows (dollars in thousands):


Fiscal Year	Amount
Remainder of 2025	$	19,178
2026	31,889
2027	19,680
2028	9,495
2029	4,713
2030	862
Thereafter	13
Total lease payments	85,830
Less: imputed interest	(6,330)
Total	$	79,500

As of July 27, 2024, the Company had an operating lease that is expected to commence in fiscal 2025 with a term of 130 months and initial annual rent of $3.2 million. This lease will replace certain other property leases that expire in fiscal 2026. Another lease is also expected to commence in fiscal 2025 with a term of 36 months and annual rent of $0.2 million.