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Leases

6 Months Ended

Aug. 01, 2021

8. Leases

We recognized sub-lease income of $150,000 for the three-month period and $296,000 for the six-month period, both ended August 1, 2021. The components of lease cost and supplemental cash flow information for leases for the three-months and six-months ended August 1, 2021 were:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	August 1, 2021		August 2, 2020		August 1, 2021		August 2, 2020
Operating lease cost	$	1,906	$	2,153	$	3,919	$	4,253
Variable lease cost		65		22		109		69
Short-term lease cost		19		67		28		186
Total operating lease cost	$	1,990	$	2,242	$	4,056	$	4,508


Operating cash outflows	$	1,954	$	1,931	$	3,936	$	3,833

The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of August 1,2021 and January 31,2021 were as follows:

	August 1, 2021		January 31, 2021
Real estate	$	25,251	$	33,651
Property and equipment		925		962
Total operating leases right-of-use assets	$	26,176	$	34,613


Current portion of operating lease liabilities	$	5,942	$	6,650
Long term operating lease liabilities		21,801		29,441
Total operating lease liabilities	$	27,743	$	36,091

The weighted-average remaining lease term is 6.5 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%.

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 1, 2021:

	Undiscounted Future Operating Lease Payments
Remainder of 2022	$	3,523
2023		5,341
2024		4,109
2025		3,996
2026		3,975
2027 and thereafter		9,114
Total lease payments	$	30,058
Less: impact of discounting		(2,315	)
Present value of lease payments	$	27,743

As of August 1, 2021, the Company had leases for a warehouse in Georgia and a showroom in North Carolina that had not yet commenced with estimated future minimum rental commitments of approximately $51 million. Both leases have an initial lease term of 10 years, with the warehouse lease expected to commence in Fall of 2021 and the showroom lease expected to commence in Fall of 2022. Since the leases have not yet commenced, the undiscounted amounts are not included in the table above.