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Leases | 12 Months Ended
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Jan. 30, 2021
Leases [Abstract] |
Leases | Note 8 – Leases We lease all of our physical stores and our single distribution center, which has a current lease term expiring in 2034. We also enter into leases of equipment, copiers and billboards. Prior to the purchase of our corporate headquarters in fiscal 2019, it was also leased. We do not have any leases with related parties. In addition, we do not have any sublease arrangements with any related party or third party. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our real estate leases typically include options to extend the lease or to terminate the lease at our sole discretion. Options to extend real estate leases typically include one or more options to renew, with renewal terms that typically extend the lease term for five years or more. Many of our leases also contain “co-tenancy” provisions, including the required presence and continued operation of certain anchor tenants in the adjoining retail space. If a co-tenancy violation occurs, we have the right to a reduction of rent for a defined period after which we have the option to terminate the lease if the violation is not cured. In addition to co-tenancy provisions, certain leases contain “go-dark” provisions that allow us to cease operations while continuing to pay rent through the end of the lease term. When determining the lease term, we include options that are reasonably certain to be exercised. Our leases typically provide for fixed minimum rental payments, and certain leases provide for contingent rental payments based upon various specified percentages of sales above minimum levels. In addition to rental payments, we are required to pay certain non-lease components, such as real estate taxes, insurance and common area maintenance (“CAM”), on most of our real estate leases. Such non-lease components are typically variable in nature. Certain real estate leases also contain escalation clauses for increases in minimum rentals, operating costs and taxes. Lease-related costs reported in our consolidated statements of income were as follows:
(In thousands) |  | 2020 |  |  | 2019 |
Operating lease cost |  | $ | 53,418 |  |  | $ | 54,681 |
Variable lease cost |  |  |  |  |  |  |  |
CAM, property taxes and insurance |  |  | 19,805 |  |  |  | 20,010 |
Percentage rent and other variable lease costs |  |  | 2,008 |  |  |  | 1,637 |
Total |  | $ | 75,231 |  |  | $ | 76,328 |
During fiscal 2020, we deferred lease payments of approximately $3.1 million during April, May, and June pursuant to arrangements reached with various landlords. These deferrals were substantially repaid over the remainder of fiscal 2020. We accounted for these arrangements as if they were part of the enforceable rights and obligations of the existing contracts, not as lease modifications. Rent continued to be recognized on a straight line basis for contracts with these deferrals. We adopted new lease accounting guidance in the first quarter of fiscal 2019, as discussed in Note 2 – “Summary of Significant Accounting Policies.” Under the prior lease guidance, lease expense was $61.2 million in fiscal 2018 and included fixed, variable, contingent rent and CAM, but excluded taxes and insurance. Other information related to leases, including supplemental cash flow information, consists of:
(In thousands) |  | 2020 |  |  | 2019 |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 38,477 |  |  | $ | 45,933 |
ROU assets obtained in exchange for operating lease liabilities |  | $ | 36,290 |  |  | $ | 31,474 |
|  | As of |  |  | As of |
|  | January 30, 2021 |  |  | February 1, 2020 |
Weighted-average remaining lease term for operating leases (in years) |  | 6.1 |  |  | 6.1 |
Weighted-average discount rate for operating leases |  |  | 5.2 | % |  |  | 5.5 | %
The following table reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to our operating lease liabilities as of January 30, 2021:
(In thousands) |  | Operating Leases |
2021 |  | $ | 59,376 |
2022 |  |  | 53,214 |
2023 |  |  | 46,899 |
2024 |  |  | 33,555 |
2025 |  |  | 22,517 |
Thereafter to 2034 |  |  | 65,922 |
Total undiscounted lease payments |  |  | 281,483 |
Less: Imputed interest |  |  | 50,067 |
Total operating lease liabilities |  |  | 231,416 |
Less: Current portion of operating lease liabilities |  |  | 48,794 |
Long-term portion of operating lease liabilities |  | $ | 182,622 |

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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