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Leases
9 Months Ended
Nov. 01, 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 $432,000 for the nine-month period, both ended November 1, 2020. The components of lease cost and supplemental cash flow information for leases for the three-month and nine-month ended November 1, 2020 were:

 

   

Thirteen Weeks Ended

   

Thirty-Nine Weeks Ended

 
   

November 1, 2020

   

November 3, 2019

   

November 1, 2020

   

November 3, 2019

 

Operating lease cost

  $ 2,061     $ 2,090     $ 6,319     $ 6,289  

Variable lease cost

    37       -       105       -  

Short-term lease cost

    70       173       272       467  

Total operating lease cost

  $ 2,168     $ 2,263     $ 6,696     $ 6,756  
                                 
                                 

Operating cash outflows

  $ 2,056     $ 1,918     $ 5,908     $ 6,255  

 

The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of November 1, 2020 were:

 

   

November 1, 2020

   

February 2, 2020

 

Real estate

  $ 35,374     $ 38,175  

Property and equipment

    948       1,337  

Total operating leases right-of-use assets

  $ 36,322     $ 39,512  
                 
                 

Current portion of operating lease liabilities

  $ 6,772     $ 6,307  

Long term operating lease liabilities

    30,937       33,794  

Total operating lease liabilities

  $ 37,709     $ 40,101  

 

The weighted-average remaining lease term is 6.8 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 2.3%. 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 November 1, 2020:

 

   

Undiscounted Future Operating Lease Payments

 

Remainder of 2020

  $ 1,949  

2021

    7,329  

2022

    5,557  

2023

    5,629  

2024

    5,253  

2025 and thereafter

    15,145  

Total lease payments

  $ 40,862  

Less: impact of discounting

    (3,153 )

Present value of lease payments

  $ 37,709  

 

As of November 1, 2020, the Company has an additional lease for a warehouse in Georgia that had not yet commenced with estimated future minimum rental commitments of approximately $28 million. This lease is expected to commence in December 2021 with lease term of up to 10 years. Since the lease has not commenced, the undiscounted amounts are not included in the table above.