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Note 4 - Leases

12 Months Ended

Jan. 30, 2021

(4)	Leases

The table below presents information related to the lease costs for operating leases for the full year ended February 1, 2020 (in thousands).

	*For the Year Ended*
	*January 30, 2021*	*February 1, 2020*

Operating lease costs	35,923	40,943
Variable lease costs	2,808	2,856
Short term lease costs	44	1,352
Total Operating Lease costs	$ 38,775	$ 45,151

Other information

The table below presents supplemental cash flow information related to leases for the full year ended January 30, 2021 (in thousands).

	For the Year Ended
	January 30, 2021	February 1, 2020
Operating cash flows for operating leases	$ 36,068	43,687

As of January 30, 2021, the weighted-average remaining operating lease term was 4.8 years and the weighted-average discount rate was 6.0% for operating leases recognized on the consolidated balance sheet.

The Company incurred impairment charges during fiscal 2020 of $3.8 million against right-of-use operating lease assets. The Company recorded total impairment charges for fiscal 2019 of $5.9 million on right-of-use assets in retained earnings as a result of the adoption of ASC 842, Leases.

During the fiscal year, the Company renegotiated the majority of its store lease portfolio resulting in a combination of rent reductions, deferments, and abatements. These negotiations have increased the percentage of leases with variable rent structures to one-third of its North American fleet, which is intended to increase flexibility in an environment with expected high sales volatility and provide a natural hedge against potential sales declines. For these renegotiated leases, under ASC 842, the Company assessed if the renegotiated leases represented a new, separate contract or a modification of the existing lease. The Company concluded all renegotiated leases represented a modification of terms of each existing agreement. As such, the Company remeasured the lease liability and decreased the carrying amount of the right-of-use asset in proportion to the modification of the existing lease.

Undiscounted cash flows

The table below reconciles the undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities recorded on the balance sheet (in thousands).

Operating Leases
2021		39,336
2022		31,595
2023		26,169
2024		21,763
2025		16,220
Thereafter		19,994
Total minimum lease payments		155,077
Less: amount of lease payments representing interest		(21,213	)
Present value of future minimum lease payments		133,864
Less: current obligations under leases		(32,402	)
Long-term lease obligations	$	101,462

As of January 30, 2021, the Company had additional executed leases that have not yet commenced for two retail locations with operating lease liabilities totaling $1.7 million that will commence in 2021 with lease terms ranging from five to ten years.