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Leases

12 Months Ended

Apr. 30, 2022

Leases [Abstract]

Leases

Leases

In 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, manufacturing 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") lease asset and lease liability, we determine our incremental borrowing rate by applying a spread above the U.S. Treasury borrowing rates. If 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 lease asset and lease liability.

Supplemental balance sheet information pertaining to our leases is as follows:

(Amounts in thousands)						4/30/2022						4/24/2021
Operating leases
ROU lease assets						$	405,287					$	343,207
Lease liabilities, short-term						75,148						67,493
Lease liabilities, long-term						354,493						294,550
Finance leases
ROU lease assets						$	468					$	593
Lease liabilities, short-term						123						121
Lease liabilities, long-term						350						473

The ROU lease assets by segment are as follows:

(Amounts in thousands)						4/30/2022						4/24/2021
Wholesale						$	90,741					$	76,899
Retail						296,908						253,910
Corporate & Other						18,106						12,991
Total ROU lease assets						$	405,755					$	343,800

The components of lease cost are as follows:

												Fiscal Year Ended
												(53 weeks)						(52 weeks)						(52 weeks)
(Amounts in thousands)												4/30/2022						4/24/2021						4/25/2020
Operating lease cost												$	83,520					$	79,072					$	76,223
Finance lease cost												130						53						166
Short-term lease cost												2,097						545						248
Variable lease cost												159						(245)						(40)
Less: Sublease income												(550)						(1,546)						(2,504)
Total lease cost												$	85,356					$	77,879					$	74,093

The following tables present supplemental lease disclosures:

						Fiscal Year Ended
						(53 weeks)												(52 weeks)
						4/30/2022												4/24/2021
(Amounts in thousands)						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Cash paid for amounts included in the measurement of lease liabilities						$	84,492					$	130					$	79,707					$	53
Lease liabilities arising from new ROU lease assets						140,376						—						93,399						631

						4/30/2022												4/24/2021
(Amounts in thousands)						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted-average remaining lease term (years)						7.2						3.8						6.8						4.8
Weighted-average discount rate						3.0		%				1.7		%				3.3		%				1.7		%

The following table presents our maturity of lease liabilities:

						4/30/2022
(Amounts in thousands)						Operating Leases (1)						Finance Leases
Within one year						$	86,634					$	130
After one year and within two years						78,802						130
After two years and within three years						66,837						130
After three years and within four years						54,262						98
After four years and within five years						44,027						—
After five years						146,570						—
Total lease payments						477,132						488
Less: Interest						47,491						15
Total lease obligations						$	429,641					$	473

(1)Excludes approximately $54.3 million in future lease payments for various operating leases commencing in a future period

Leases

Leases

In 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, manufacturing 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") lease asset and lease liability, we determine our incremental borrowing rate by applying a spread above the U.S. Treasury borrowing rates. If 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 lease asset and lease liability.

Supplemental balance sheet information pertaining to our leases is as follows:

(Amounts in thousands)						4/30/2022						4/24/2021
Operating leases
ROU lease assets						$	405,287					$	343,207
Lease liabilities, short-term						75,148						67,493
Lease liabilities, long-term						354,493						294,550
Finance leases
ROU lease assets						$	468					$	593
Lease liabilities, short-term						123						121
Lease liabilities, long-term						350						473

The ROU lease assets by segment are as follows:

(Amounts in thousands)						4/30/2022						4/24/2021
Wholesale						$	90,741					$	76,899
Retail						296,908						253,910
Corporate & Other						18,106						12,991
Total ROU lease assets						$	405,755					$	343,800

The components of lease cost are as follows:

												Fiscal Year Ended
												(53 weeks)						(52 weeks)						(52 weeks)
(Amounts in thousands)												4/30/2022						4/24/2021						4/25/2020
Operating lease cost												$	83,520					$	79,072					$	76,223
Finance lease cost												130						53						166
Short-term lease cost												2,097						545						248
Variable lease cost												159						(245)						(40)
Less: Sublease income												(550)						(1,546)						(2,504)
Total lease cost												$	85,356					$	77,879					$	74,093

The following tables present supplemental lease disclosures:

						Fiscal Year Ended
						(53 weeks)												(52 weeks)
						4/30/2022												4/24/2021
(Amounts in thousands)						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Cash paid for amounts included in the measurement of lease liabilities						$	84,492					$	130					$	79,707					$	53
Lease liabilities arising from new ROU lease assets						140,376						—						93,399						631

						4/30/2022												4/24/2021
(Amounts in thousands)						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted-average remaining lease term (years)						7.2						3.8						6.8						4.8
Weighted-average discount rate						3.0		%				1.7		%				3.3		%				1.7		%

The following table presents our maturity of lease liabilities:

						4/30/2022
(Amounts in thousands)						Operating Leases (1)						Finance Leases
Within one year						$	86,634					$	130
After one year and within two years						78,802						130
After two years and within three years						66,837						130
After three years and within four years						54,262						98
After four years and within five years						44,027						—
After five years						146,570						—
Total lease payments						477,132						488
Less: Interest						47,491						15
Total lease obligations						$	429,641					$	473

(1)Excludes approximately $54.3 million in future lease payments for various operating leases commencing in a future period

X

- References

No definition available.

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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

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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

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