LEASES

9 Months Ended

Oct. 29, 2022

The Company has operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. The Company’s leases have remaining lease terms ranging from less than one year up to ten years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the lease early. The Company records all occupancy costs in Cost of sales, except costs for administrative office buildings, which are recorded in Selling, general, and administrative expenses. As of the periods presented, the Company’s finance leases were not material to the Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows.

The following components of operating lease expense were recognized in the Company’s Consolidated Statements of Operations:


	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
	(in thousands)
Fixed operating lease cost	$	26,437	$	28,378	$	73,477	$	78,408
Variable operating lease cost (1)	12,477		15,459		40,168		29,680
Total operating lease cost	$	38,914	$	43,837	$	113,645	$	108,088

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(1)Includes short term leases with lease periods of less than 12 months as well as lease abatements accounted for as reductions to variable lease costs under the COVID-19 expedient of $0.1 million and $0.7 million during the Third Quarter 2022 and Third Quarter 2021, respectively, and $1.0 million and $11.0 million during Year-To-Date 2022 and Year-To-Date 2021, respectively.

As of October 29, 2022, the weighted-average remaining operating lease term was 3.9 years, and the weighted-average discount rate for operating leases was 5.0%. Cash paid for amounts included in the measurement of operating lease liabilities during Year-To-Date 2022 was $75.8 million. ROU assets obtained in exchange for new operating lease liabilities were $38.8 million during Year-To-Date 2022.

As of October 29, 2022, the maturities of operating lease liabilities were as follows:


	October 29, 2022
	(in thousands)
Remainder of 2022	$	29,891
2023	71,349
2024	33,130
2025	18,374
2026	15,188
Thereafter	30,621
Total operating lease payments	198,553
Less: imputed interest	(17,410)
Present value of operating lease liabilities	$	181,143