We determine if a contract contains a lease at inception. We lease retail shops, warehouse and office space under operating leases. For leases with renewal periods at our option, we determine the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease.

Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. We estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment.

We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term.

Beginning in fiscal year 2020, as a result of COVID-19, we held discussions with landlords regarding restructuring of our leases in light of various contractual and legal defenses and have subsequently entered into a total of 339 amendments with our respective landlords as of March 28, 2021. Under these amendments, certain rent payments have been abated, deferred or modified without penalty for various periods, generally covering two to four months of rent payments. During the 13 weeks ended March 28, 2021, we received concessions from certain landlords in the form of rent deferrals and abatements which were not substantial, and we have elected to not account for these rent concessions as lease modifications.

During the 13 weeks ended March 28, 2021, we terminated 2 leases. We incurred $0.2 million in lease termination fees related to these leases for the 13 weeks ended March 28, 2021. Upon termination of leases during the 13 weeks ended March 28, 2021, we derecognized ROU assets of $0.6 million and lease liabilities of $0.7 million that resulted in a net gain of $0.1 million that is recorded in impairment, loss on disposal of property and equipment and shop closures.

During the first quarter of 2021, we amended the lease for our corporate Support Center office in Chicago to relocate to a different office space within the same building. We accounted for this amendment as a lease modification which resulted in a decrease in the related right-of-use asset and lease liability of $2.7 million.

	March 28,			March 29,
	2021			2020
Weighted average remaining lease term (years)		7.65			8.33
Weighted average discount rate		7.83	%		7.90	%

Certain of our operating lease agreements include variable payments that are passed through by the landlord, such as common area maintenance and real estate taxes, as well as variable payments based on percentage rent for certain of our shops. Pass-through charges and payments based on percentage rent are included within variable lease cost.

		13 weeks ended
		March 28,		March 29,
	Classification	2021		2020
Operating lease cost	Occupancy and General and administrative expenses		10,411		11,770
Variable lease cost	Occupancy		3,239		3,322
Total lease cost		$	13,650	$	15,092

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

	13 weeks ended
	March 28,		March 29,
	2021		2020
Operating cash flows rent paid for operating lease liabilities		12,914		11,979
Operating right-of-use assets obtained in exchange for new operating lease liabilities		1,718		5,534
Reduction in operating right-of-use assets due to lease terminations and modifications		3,294		1,439

As of March 28, 2021, we had no real estate leases entered into that had not yet commenced.

	Operating Leases
Remainder of 2021		36,613
2022		39,353
2023		37,229
2024		34,706
2025		31,823
2026		28,224
Thereafter		82,198
Total lease payments		290,146
Less: imputed interest		(76,343	)
Present value of lease liabilities	$	213,803