XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.19.2

Leases | 6 Months Ended
--- | ---
Jul. 31, 2019
Leases [Abstract] |
Leases | 7. Leases The Company has operating leases for stores, distribution and fulfillment centers, corporate offices and equipment. The Company subleases certain properties to third parties. The Company has elected not to record a lease liability and right-of-use asset for leases with original terms of 12 months or less. The Company has elected the practical expedient to not separate non-lease components from lease components as it pertains to real estate leases. Store leases have remaining lease terms that range from less than one year up to 15 years, some of which contain options to extend the lease for one or two 5-year periods. Payments related to a renewal period are included in the lease liability and right-of-use asset only when the Company is reasonably certain that it will exercise the option to renew the lease for an extended period of time. Certain leases may contain variable lease payments such as rent based on a percentage of net sales. Variable lease payments may be subject to a breakpoint threshold of fixed rent. Variable lease payments, other than those that depend on an index or a rate, are not included in the measurement of the lease liability. The lease liability is calculated at the present value of certain future payments, discounted using the Company’s incremental borrowing rate, which approximates the rate of interest the Company would pay to borrow an amount equal to the lease payments on a fully collateralized basis over a similar term. Significant judgment is used in determining the incremental borrowing rate. Total operating lease costs were $67,827 and $134,075 during the three and six months ended July 31, 2019, respectively. Total variable lease costs were $16,770 and $34,709 during the three and six months ended July 31, 2019, respectively. Short-term lease costs and sublease income were not material during the three and six months ended July 31, 2019. Other information related to leases was as follows:
|  | Six Months Ended |
|  | July 31, 2019 |
Other information |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 144,380 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 34,274 |
Weighted-average remaining lease term - operating leases |  | 7.5 years |
Weighted-average discount rate - operating leases |  |  | 6.5 | %
The following is a schedule by year of the maturities of operating lease liabilities with original terms in excess of one year, as of July 31, 2019:
|  | Operating |
|  | Leases |
Fiscal Year |  |  |  |
2020 (excluding the six months ended July 31, 2019) |  | $ | 147,926 |
2021 |  |  | 275,325 |
2022 |  |  | 241,618 |
2023 |  |  | 214,691 |
2024 |  |  | 181,685 |
Thereafter |  |  | 673,472 |
Total undiscounted future minimum lease payments |  |  | 1,734,717 |
Less imputed interest |  |  | (435,022 | )
Total discounted future minimum lease payments |  | $ | 1,299,695 |
As of July 31, 2019, the Company had commitments of approximately $32,736 not included in the amounts above related to eight executed but not yet commenced store leases. The following is a schedule by year of the future minimum lease payments for operating leases with original terms in excess of one year, as of January 31, 2019:
|  | Operating |
|  | Leases |
Fiscal Year |  |  |  |
2020 |  | $ | 294,527 |
2021 |  |  | 263,209 |
2022 |  |  | 228,596 |
2023 |  |  | 200,776 |
2024 |  |  | 167,130 |
Thereafter |  |  | 558,655 |
Total minimum lease payments |  | $ | 1,712,893 |
The Company, through its wholly-owned subsidiary, Anthropologie, Inc., is party to a ground lease (the “Lease”) with Waterloo Devon, L.P. (the “Landlord”). Wade L. McDevitt was a minority owner of the Landlord and its general partner and is the brother-in-law of Scott Belair, one of the Company’s former directors. Pursuant to the Lease, the Company rented approximately six acres located in Devon, Pennsylvania to develop a lifestyle center, which includes an expanded format Anthropologie store, a Terrain store, several restaurant concepts under the Food and Beverage division and a boutique event space. The Lease, which commenced on June 14, 2017, has an initial term of 40 years with two options to extend, each for an additional ten-year term. The initial rental rate is $1,087 per year, and rent increases 10% every five years during the initial term. The aggregate amount of rental payments payable under the initial term of the Lease is approximately $62,135. Real estate taxes, insurance, construction costs and other third-party expenses will also be paid by the Company. If the Company exercises its option to extend the Lease, rental payments during such extension term will be 90% of the market rental rate. An independent committee of the Board of Directors retained a national commercial real estate services firm to provide an appraisal of the initial market rental value of a portion of the property, which confirmed that the proposed initial rental rate per acre was consistent with market rates. The Lease and appraisal were reviewed by a committee of disinterested members of the Company’s Board of Directors and the Lease was approved by such committee and by the Company’s Board of Directors.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration