Leases

12 Months Ended

Feb. 04, 2024

The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and property taxes, are as follows:


	February 4, 2024		January 29, 2023		January 30, 2022
Operating lease cost	$	198.3	$	168.2	$	134.9
Variable lease cost	40.1		38.4		30.1
Short-term lease cost (1)	2.9		2.1		0.6
Total lease cost	$	241.3	$	208.7	$	165.6

(1)We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. We have not recorded ROU assets and liabilities for leases with an initial term of 12 months or less that do not include a purchase option that we are reasonably certain to exercise.

Operating lease cost, variable lease cost and short-term lease cost related primarily to our facilities is included in “Other store operating expenses” for our operating stores, “Pre-opening costs” for our stores not yet operating, or “General and administrative expenses” for our store support center, in the Consolidated Statements of Comprehensive Income.

Supplemental disclosures of cash flow information related to leases were as follows:


	February 4, 2024			January 29, 2023			January 30, 2022
Cash paid for operating lease liabilities	$	204.3		$	189.3		$	157.1
ROU assets obtained in exchange for new operating lease liabilities (1)	$	92.8		$	376.2		$	72.5
Weighted-average remaining lease term—operating leases	12.9 years			13.6 years			14.2 years
Weighted-average discount rate—operating leases	7.5		%	7.1		%	6.0		%

(1)Includes the leases acquired in the business combination discussed at Note 2.

Minimum future maturities of operating lease liabilities as of February 4, 2024 were as follows:


2024	$	190.8
2025	208.7
2026	210.4
2027	207.3
2028	204.3
Thereafter	1,576.5
Total future operating lease liability	$	2,598.0
Less: interest	(963.4)
Present value of operating lease liabilities	$	1,634.6

Operating lease payments in the table above includes minimum lease payments for five future sites for which the leases have commenced. Operating lease payments exclude approximately $216.3 of minimum lease payments related to twelve facility leases that have been executed but have not yet commenced.

Sale-Leaseback Transaction

In October 2023, the Company entered into a sale and master lease agreement (a "sale-leaseback") with an unrelated third-party. Under these agreements, the Company sold four of its store properties, including land, buildings and certain improvements, at a sale price of $85.8 and then leased the assets back through the sale-leaseback transaction.

Based on certain criteria and in accordance with U.S. GAAP, the transaction was accounted for as a failed sale-leaseback. As a result, the store property assets remain on the consolidated balance sheet at their historical net book value and are depreciated over the remaining term of the master lease. A financing obligation liability was recognized in the amount of the net proceeds received in the amount of $84.2. The Company will not recognize rent expense related to the leased assets. Instead, monthly rent payments under the master lease agreement (initially, $6.4 per year) will be recorded as interest expense and a reduction of the outstanding liability.

As of February 4, 2024 the long-term outstanding liability of $83.7 was recorded in Other long-term liabilities and the current outstanding liability of $0.3 was recorded in Accrued liabilities on the consolidated balance sheet related to the financing liability.