We lease all of our physical stores, our Evansville distribution center, which has a current lease term expiring in 2034, and other warehousing and office space. We also enter into leases of equipment and other assets. Substantially all of our leases are operating leases; however, as a result of the acquisition of Rogan’s, we also acquired certain assets subject to finance leases. The finance lease assets and related current liabilities and noncurrent liabilities were recorded in Other Noncurrent Assets, Accrued and Other Liabilities and Other long-term liabilities, respectively. Leases with terms of twelve months or less are immaterial and are expensed as incurred, and we did not have any leases with related parties or any sublease arrangements with any related party or third party as of February 1, 2025. 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, 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 costs, including other related occupancy costs, reported in our Consolidated Statements of Income were as follows:


(In thousands)	2024		2023		2022
Operating lease cost	$	70,596	$	65,244	$	60,777
Variable lease cost
Occupancy costs		23,046		21,243		19,001
Percentage rent and other variable lease costs		448		1,257		1,231
Finance lease cost
Amortization of leased assets		21		0		0
Interest on lease liabilities		10		0		0
Total	$	94,121	$	87,744	$	81,009

Other information related to leases, including supplemental cash flow information, consists of:


(In thousands)	2024			2023			2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	55,490		$	59,129		$	48,991
ROU assets obtained in exchange for operating lease liabilities1	$	53,113		$	72,772		$	146,996

	As of			As of			As of
	February 1, 2025			February 3, 2024			January 28, 2023
Weighted-average remaining lease term for operating leases (in years)		7.0			7.6			7.3
Weighted-average discount rate for operating leases		4.7	%		4.2	%		4.2	%

1) Includes ROU assets added as part of the Rogan's acquisition described in Note 3 – “Acquisition of Rogan Shoes”

The following table reconciles the undiscounted cash flows for each of the next five years and the total of the remaining years to our operating lease liabilities as of February 1, 2025:


(In thousands)	Operating Leases
2025	$	68,885
2026		71,858
2027		65,801
2028		61,265
2029		47,877
Thereafter to 2041		124,789
Total undiscounted lease payments		440,475
Less: Imputed interest		72,488
Total operating lease liabilities		367,987
Less: Current portion of operating lease liabilities		53,013
Long-term portion of operating lease liabilities	$	314,974