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Leases | 12 Months Ended
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Apr. 24, 2021
Leases [Abstract] |
Leases | LeasesIn February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases (Topic 842), requiring lessees to record substantially all operating leases on their balance sheet. Under this standard, the lessee is required to record an asset for the right to use the underlying asset for the lease term and a corresponding liability for the contractual lease payments. We adopted this standard in the first quarter of fiscal 2020 using a modified retrospective approach. The Company leases real estate for retail stores, distribution centers, warehouses, plants, showrooms and office space. We also have equipment leases for tractors/trailers, IT and office equipment, and vehicles. We determine if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all the economic benefits from the use of that identified asset. Most of our real estate leases include options to renew or terminate early. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Most of our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our right of use ("ROU") asset and lease liability, we determine our incremental borrowing rate by applying a spread above the U.S. Treasury borrowing rates. In the case an interest rate is implicit in a lease we will use that rate as the discount rate for that lease. Some of our leases contain variable rent payments based on a Consumer Price Index or percentage of sales. Due to the variable nature of these costs, they are not included in the measurement of the ROU asset and lease liability. COVID-19 Impact In response to the COVID-19 global pandemic, beginning in April of fiscal 2020, we secured rent relief from several of our lessors, most often in the form of the deferral of rent payments for one or more months. Under these agreements, certain rent payments were deferred without penalty and are to be paid back over varying periods. In accordance with FASB Staff Q&A - Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic ("FASB Staff Q&A") issued in April 2020, we elected to account for lease deferrals resulting directly from COVID-19 as if the enforceable rights and obligations for the deferrals existed in the respective contracts at lease inception and as such we did not account for the deferrals as lease modifications. Guidance from the FASB Staff Q&A provided methods to account for such rent deferrals which included the option to treat the lease as if no changes to the lease contract were made or to treat the deferred payments as variable lease payments. The FASB Staff Q&A allowed entities to select the most practical approach and did not require the same approach be applied consistently to all leases. For the majority of our leases, we elected to account for the deferrals as if no changes to the lease contract were made and continued to recognize lease expense, on a straight-line basis, during the deferral period. As of April 24, 2021, we have paid back the majority of our deferred rent. Supplemental balance sheet information pertaining to our leases is as follows:
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020
Operating leases |  |  |  |
ROU assets |  | $ | 343,207 |  |  | $ | 318,634 |
Lease liabilities, short-term |  | 67,493 |  |  | 64,363 |
Lease liabilities, long-term |  | 294,550 |  |  | 270,162 |
Financing leases |  |  |  |
ROU assets |  | $ | 593 |  |  | $ | 13 |
Lease liabilities, short-term |  | 121 |  |  | 13 |
Lease liabilities, long-term |  | 473 |  |  | — |
The ROU assets by segment are as follows:
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020
Wholesale |  | $ | 76,899 |  |  | $ | 69,665 |
Retail |  | 253,910 |  |  | 236,719 |
Corporate & Other |  | 12,991 |  |  | 12,263 |
Total ROU assets |  | $ | 343,800 |  |  | $ | 318,647 |
The components of lease cost are as follows:
|  |  |  | Fiscal Year Ended (1)
|  |  |  | (52 weeks) |  | (52 weeks)
(Amounts in thousands) |  |  |  | 4/24/2021 |  | 4/25/2020
Operating lease cost |  |  |  | $ | 79,072 |  |  | $ | 76,223 |
Financing lease cost |  |  |  | 53 |  |  | 166 |
Short-term lease cost |  |  |  | 545 |  |  | 248 |
Variable lease cost (2) |  |  |  | (245) |  |  | (40) |
Less: Sublease income |  |  |  | (1,546) |  |  | (2,504) |
Total lease cost |  |  |  | $ | 77,879 |  |  | $ | 74,093 |
(1)Rental expense for fiscal year ended 4/27/2019 was $77.2 million. (2)Includes deferred payments on select leases in accordance with the FASB Staff Q&A. The following tables present supplemental lease disclosures:
|  | Fiscal Year Ended
|  | (52 weeks) |  | (52 weeks)
|  | 4/24/2021 |  | 4/25/2020
(Amounts in thousands) |  | Operating Leases |  | Financing Leases |  | Operating Leases |  | Financing Leases
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 79,707 |  |  | $ | 53 |  |  | $ | 77,176 |  |  | $ | 165 |
Lease liabilities arising from new ROU assets |  | 93,399 |  |  | 631 |  |  | 72,061 |  |  | — |
|  | 4/24/2021 |  | 4/25/2020
(Amounts in thousands) |  | Operating Leases |  | Financing Leases |  | Operating Leases |  | Financing Leases
Weighted-average remaining lease term (years) |  | 6.8 |  | 4.8 |  | 7.0 |  | 0.3
Weighted-average discount rate |  | 3.3 | % |  | 1.7 | % |  | 3.9 | % |  | 3.9 | %
The following table presents our maturity of lease liabilities:
|  | 4/24/2021 |  |
(Amounts in thousands) |  | Operating Leases (1) |  | Financing Leases |  |  |  |
Within one year |  | $ | 78,079 |  |  | $ | 130 |  |  |  |  |
After one year and within two years |  | 68,593 |  |  | 130 |  |  |  |  |
After two years and within three years |  | 59,561 |  |  | 130 |  |  |  |  |
After three years and within four years |  | 48,304 |  |  | 130 |  |  |  |  |
After four years and within five years |  | 38,122 |  |  | 98 |  |  |  |  |
After five years |  | 110,735 |  |  | — |  |  |  |  |
Total lease payments |  | 403,394 |  |  | 618 |  |  |  |  |
Less: Interest |  | 41,351 |  |  | 24 |  |  |  |  |
Total lease obligations |  | $ | 362,043 |  |  | $ | 594 |  |  |  |  |
(1)Excludes approximately $29.7 million in future lease payments for various operating leases commencing in a future period
Leases | LeasesIn February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases (Topic 842), requiring lessees to record substantially all operating leases on their balance sheet. Under this standard, the lessee is required to record an asset for the right to use the underlying asset for the lease term and a corresponding liability for the contractual lease payments. We adopted this standard in the first quarter of fiscal 2020 using a modified retrospective approach. The Company leases real estate for retail stores, distribution centers, warehouses, plants, showrooms and office space. We also have equipment leases for tractors/trailers, IT and office equipment, and vehicles. We determine if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all the economic benefits from the use of that identified asset. Most of our real estate leases include options to renew or terminate early. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Most of our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our right of use ("ROU") asset and lease liability, we determine our incremental borrowing rate by applying a spread above the U.S. Treasury borrowing rates. In the case an interest rate is implicit in a lease we will use that rate as the discount rate for that lease. Some of our leases contain variable rent payments based on a Consumer Price Index or percentage of sales. Due to the variable nature of these costs, they are not included in the measurement of the ROU asset and lease liability. COVID-19 Impact In response to the COVID-19 global pandemic, beginning in April of fiscal 2020, we secured rent relief from several of our lessors, most often in the form of the deferral of rent payments for one or more months. Under these agreements, certain rent payments were deferred without penalty and are to be paid back over varying periods. In accordance with FASB Staff Q&A - Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic ("FASB Staff Q&A") issued in April 2020, we elected to account for lease deferrals resulting directly from COVID-19 as if the enforceable rights and obligations for the deferrals existed in the respective contracts at lease inception and as such we did not account for the deferrals as lease modifications. Guidance from the FASB Staff Q&A provided methods to account for such rent deferrals which included the option to treat the lease as if no changes to the lease contract were made or to treat the deferred payments as variable lease payments. The FASB Staff Q&A allowed entities to select the most practical approach and did not require the same approach be applied consistently to all leases. For the majority of our leases, we elected to account for the deferrals as if no changes to the lease contract were made and continued to recognize lease expense, on a straight-line basis, during the deferral period. As of April 24, 2021, we have paid back the majority of our deferred rent. Supplemental balance sheet information pertaining to our leases is as follows:
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020
Operating leases |  |  |  |
ROU assets |  | $ | 343,207 |  |  | $ | 318,634 |
Lease liabilities, short-term |  | 67,493 |  |  | 64,363 |
Lease liabilities, long-term |  | 294,550 |  |  | 270,162 |
Financing leases |  |  |  |
ROU assets |  | $ | 593 |  |  | $ | 13 |
Lease liabilities, short-term |  | 121 |  |  | 13 |
Lease liabilities, long-term |  | 473 |  |  | — |
The ROU assets by segment are as follows:
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020
Wholesale |  | $ | 76,899 |  |  | $ | 69,665 |
Retail |  | 253,910 |  |  | 236,719 |
Corporate & Other |  | 12,991 |  |  | 12,263 |
Total ROU assets |  | $ | 343,800 |  |  | $ | 318,647 |
The components of lease cost are as follows:
|  |  |  | Fiscal Year Ended (1)
|  |  |  | (52 weeks) |  | (52 weeks)
(Amounts in thousands) |  |  |  | 4/24/2021 |  | 4/25/2020
Operating lease cost |  |  |  | $ | 79,072 |  |  | $ | 76,223 |
Financing lease cost |  |  |  | 53 |  |  | 166 |
Short-term lease cost |  |  |  | 545 |  |  | 248 |
Variable lease cost (2) |  |  |  | (245) |  |  | (40) |
Less: Sublease income |  |  |  | (1,546) |  |  | (2,504) |
Total lease cost |  |  |  | $ | 77,879 |  |  | $ | 74,093 |
(1)Rental expense for fiscal year ended 4/27/2019 was $77.2 million. (2)Includes deferred payments on select leases in accordance with the FASB Staff Q&A. The following tables present supplemental lease disclosures:
|  | Fiscal Year Ended
|  | (52 weeks) |  | (52 weeks)
|  | 4/24/2021 |  | 4/25/2020
(Amounts in thousands) |  | Operating Leases |  | Financing Leases |  | Operating Leases |  | Financing Leases
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 79,707 |  |  | $ | 53 |  |  | $ | 77,176 |  |  | $ | 165 |
Lease liabilities arising from new ROU assets |  | 93,399 |  |  | 631 |  |  | 72,061 |  |  | — |
|  | 4/24/2021 |  | 4/25/2020
(Amounts in thousands) |  | Operating Leases |  | Financing Leases |  | Operating Leases |  | Financing Leases
Weighted-average remaining lease term (years) |  | 6.8 |  | 4.8 |  | 7.0 |  | 0.3
Weighted-average discount rate |  | 3.3 | % |  | 1.7 | % |  | 3.9 | % |  | 3.9 | %
The following table presents our maturity of lease liabilities:
|  | 4/24/2021 |  |
(Amounts in thousands) |  | Operating Leases (1) |  | Financing Leases |  |  |  |
Within one year |  | $ | 78,079 |  |  | $ | 130 |  |  |  |  |
After one year and within two years |  | 68,593 |  |  | 130 |  |  |  |  |
After two years and within three years |  | 59,561 |  |  | 130 |  |  |  |  |
After three years and within four years |  | 48,304 |  |  | 130 |  |  |  |  |
After four years and within five years |  | 38,122 |  |  | 98 |  |  |  |  |
After five years |  | 110,735 |  |  | — |  |  |  |  |
Total lease payments |  | 403,394 |  |  | 618 |  |  |  |  |
Less: Interest |  | 41,351 |  |  | 24 |  |  |  |  |
Total lease obligations |  | $ | 362,043 |  |  | $ | 594 |  |  |  |  |
(1)Excludes approximately $29.7 million in future lease payments for various operating leases commencing in a future period

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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
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- 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
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