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LEASES
 6 Months Ended
Jul. 02, 2022
Leases [Abstract]  
LEASES LEASES
The Company has operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. The Company’s leases generally have initial terms ranging from 1 year to 10 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to early terminate the lease.
As of the periods presented, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows.
The following components of lease expense are included in Selling, general, and administrative expenses on the Company’s consolidated statements of operations for the second quarter and first two quarters of fiscal 2022 and 2021:
Fiscal quarter endedTwo fiscal quarters ended
(dollars in thousands)July 2, 2022July 3, 2021July 2, 2022July 3, 2021
Operating lease cost$39,169 $42,100 $78,626 $84,798 
Variable lease cost(*)
17,173 16,276 34,241 32,674 
Net lease cost$56,342 $58,376 $112,867 $117,472 
(*)Includes short-term leases, which are not material, and operating lease asset impairment charges.
As of July 2, 2022, the weighted average remaining operating lease term was 4.7 years, and the weighted average discount rate for operating leases was 3.32%.
Cash paid for amounts included in the measurement of operating lease liabilities in the second quarter and first two quarters of fiscal 2022 were $42.5 million and $85.8 million, respectively.
Operating lease assets obtained in exchange for operating lease liabilities in the second quarter and first two quarters of fiscal 2022 were $14.5 million and $30.8 million, respectively.
As of July 2, 2022, the maturities of lease liabilities were as follows:
(dollars in thousands)Operating leases
Remainder of 2022$81,872 
2023148,893 
2024120,016 
202585,642 
202661,239 
202739,305 
After 202751,565 
Total lease payments$588,532 
Less: Interest(45,505)
Present value of lease liabilities(*)
$543,027 
(*)As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate is applied based on information available at commencement date to determine the present value of lease payments.
As of July 2, 2022, the minimum rental commitments for additional operating lease contracts, primarily for retail stores, that have not yet commenced are $21.7 million. These operating leases will commence between fiscal year 2022 and fiscal year 2023 with lease terms of 3 years to 10 years.