XML 26 R16.htm IDEA: XBRL DOCUMENT

Leases

6 Months Ended

Aug. 02, 2020

Disclosure Text Block [Abstract]

Lessor, Operating Leases [Text Block]

8. Leases

In fiscal 2020, we adopted Accounting Standards Codification Topic 842 Leases. We recognized sub-lease income of $144,000 for the three-month period and $288,000 for the six-month period, both ended August 2, 2020. The components of lease cost and supplemental cash flow information for leases for the three-months and six-months ended August 2, 2020 were:

		Thirteen Weeks Ended								Twenty-Six Weeks Ended
		August 2, 2020				August 4, 2019				August 2, 2020				August 4, 2019
Operating lease cost		$	2,153			$	2,123			$	4,253			$	4,200
Variable lease cost			22				-				69				-
Short-term lease cost			67				178				186				291
Total operating lease cost		$	2,242			$	2,301			$	4,508			$	4,491

Operating cash outflows		$	1,931			$	1,948			$	3,833			$	4,334

The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of August 2, 2020 were:

		August 2, 2020				February 2, 2020
Real estate		$	36,909			$	38,175
Property and equipment			1,078				1,337
Total operating leases right-of-use assets		$	37,987			$	39,512


Current portion of operating lease liabilities		$	6,844			$	6,307
Long term operating lease liabilities			32,411				33,794
Total operating lease liabilities		$	39,255			$	40,101

The weighted-average remaining lease term is 7.0 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 2.75%. Due to the COVID-19 pandemic, we received concessions on several of our leases, including changes in lease terms and deferred rent payments. We accounted for the concessions as lease modifications and used current LIBOR plus 1.5% for those leases. The weighted-average discount rate decreased due to a decrease in LIBOR.

None of the modifications had a material effect on our condensed consolidated financial statements or results of operations.

The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on August 2, 2020:

		Undiscounted Future Operating Lease Payments
Remainder of 2020		$	3,947
2021			7,451
2022			5,671
2023			5,726
2024			5,280
2025 and thereafter			15,205
Total lease payments		$	43,280
Less: impact of discounting			(4,025	)
Present value of lease payments		$	39,255

As of August 2, 2020, we did not have any additional operating or finance leases that had not yet commenced.