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Leases | 12 Months Ended
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Feb. 01, 2020
Leases [Abstract] |
Leases | 10. Leases The Company leases all store premises, some of its office space and certain information technology and office equipment. These leases are generally classified as operating leases. Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes, and certain other expenses. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. When measuring operating lease ROU assets and operating lease liabilities after the date of adoption of ASC 842 (February 3, 2019), the Company only includes cash flows related to options to extend or terminate leases once those options are executed. Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities. When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset. For leases that qualify for the short-term lease exemption, the Company does not record an operating lease liability or operating lease ROU asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less. The following table summarizes expense categories and cash payments for operating leases during the period. It also includes the total non-cash transaction activity for new operating lease ROU assets and related operating lease liabilities entered into during the period.
|  | For the Year Ended |
|  | February 1, 2020 |
(In thousands) |  |  |  |
Lease costs |  |  |  |
Operating lease costs |  | $ | 349,429 |
Variable lease costs |  |  | 102,797 |
Short-term leases and other lease costs |  |  | 37,293 |
Total lease costs |  | $ | 489,519 |
Other information |  |  |  |
Cash paid for operating lease liability |  | $ | (328,925 | )
New operating lease ROU asset entered into during the period |  | $ | 277,562 |
The following table contains the average remaining lease term and discount rate, weighted by outstanding operating lease liability as of the end of the period:
Lease term and discount rate |  | February 1, 2020 |
Weighted-average remaining lease term - operating leases |  | 6.2 years |
Weighted-average discount rate - operating leases |  | 5.1% |
The table below is a maturity analysis of the operating leases in effect as of the end of the period. Undiscounted cash flows for finance leases and short-term leases are not material for the periods reported and are excluded from the table below:
|  | Undiscounted cash flows |
|  | February 1, 2020 |
(In thousands) |  |  |  |
Fiscal years: |  |  |  |
2020 |  | $ | 374,819 |
2021 |  |  | 331,578 |
2022 |  |  | 277,954 |
2023 |  |  | 255,695 |
2024 |  |  | 184,591 |
Thereafter |  |  | 471,160 |
Total undiscounted cash flows |  | $ | 1,895,797 |
Less: discount on lease liability |  |  | (294,901 | )
Total lease liability |  | $ | 1,600,896 |
The Company adopted ASC 842 as of February 3, 2019 through the modified retrospective method. Prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting treatment. In accordance with the transition guidance within ASC 842, the following table provides the disclosures related to Fiscal Years 2018 and 2017 as required under ASC 840, Leases. Refer to Note 2 for further information about the Company’s adoption of ASC 842.
|  | For the Years Ended |
|  | February 2, |  |  | February 3, |
(In thousands) |  | 2019 |  |  | 2018 |
Store rent: |  |  |  |  |  |  |  |
Fixed minimum |  | $ | 303,123 |  |  | $ | 298,458 |
Contingent |  |  | 13,883 |  |  |  | 9,566 |
Total store rent, excluding common area maintenance charges, real estate taxes and certain other expenses |  | $ | 317,006 |  |  | $ | 308,025 |
Offices, distribution facilities, equipment and other |  |  | 18,636 |  |  |  | 26,960 |
Total rent expense |  | $ | 335,642 |  |  | $ | 334,985 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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