We lease our office space and all of our retail store locations, transportation equipment and other equipment under various noncancelable operating leases. The leases have varying terms and expire at various dates through 2037. The store leases in the United States, Puerto Rico and Canada typically have initial terms of approximately 10 years. The store leases in the U.K. and the ROI typically have initial terms of between 10 and 15 years. Our lease portfolio includes leases with fixed base rental payments, rental payments based on a percentage of retail sales over contractual amounts and others with predetermined fixed escalations of the minimum rentals based on a defined consumer price index or percentage. Generally, most of the leases require us to pay taxes, insurance, maintenance costs and contingent rentals based on sales. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Under ASC 842, for store, office and equipment leases beginning in Fiscal 2020 and later, we have elected to not separate fixed lease components and non-lease components. Accordingly, we include fixed rental payments, common area maintenance costs, promotional advertising costs and other fixed costs in our measurement of lease liabilities.

Our leases do not provide an implicit rate, so the incremental borrowing rate, based on the information available at commencement or modification date, is used in determining the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, we used the incremental borrowing rate that corresponded to the initial lease term as of the date of adoption.

Net lease costs are included within selling and administrative expenses on the Consolidated Statements of Operations. The table below presents the components of lease cost for operating leases for the years ended February 1, 2025, February 3, 2024 and January 28, 2023.


(In thousands)	Fiscal 2025			Fiscal 2024			Fiscal 2023
Operating lease cost	$	157,322		$	164,355		$	166,617
Variable lease cost		11,702			14,582			16,966
Less: Sublease income		(17	)		(173	)		(314	)
Net Lease Cost	$	169,007		$	178,764		$	183,269

The following table reconciles the maturities of undiscounted cash flows to our operating lease liabilities recorded on the Consolidated Balance Sheets at February 1, 2025:


Fiscal Years	(In thousands)
2026	$	147,883
2027		119,546
2028		79,185
2029		54,723
2030		43,078
Thereafter		127,828
Total undiscounted future minimum lease payments		572,243
Less: Amounts representing interest		(87,154	)
Total Present Value of Operating Lease Liabilities	$	485,089

Our weighted-average remaining lease term and weighted-average discount rate for operating leases as of February 1, 2025 and February 3, 2024 are:


	February 1, 2025	February 3, 2024
Weighted-average remaining lease term (years)	5.8 years	5.5 years
Weighted-average discount rate	5.6%	5.3%

As of February 1, 2025, we have additional operating leases that have not yet commenced with estimated right of use liabilities of $27.9 million. These leases will commence in Fiscal 2026 with lease terms of 1 to 11 years.