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Leases

9 Months Ended

Oct. 31, 2021

9. Leases

We recognized sub-lease income of $266,000 for the three-month period and $561,000 for the nine-month period, both ended October 31, 2021. 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-months and nine-months ended October 31, 2021 and November 1, 2020 were:

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 31, 2021		November 1, 2020		October 31, 2021		November 1, 2020
Operating lease cost	$	1,794	$	2,061	$	5,712	$	6,319
Variable lease cost		53		37		162		105
Short-term lease cost		27		70		94		272
Total operating lease cost	$	1,874	$	2,168	$	5,968	$	6,696


Operating cash outflows	$	1,843	$	2,056	$	5,818	$	5,908

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

	October 31, 2021		January 31, 2021
Real estate	$	52,010	$	33,651
Property and equipment		1,215		962
Total operating leases right-of-use assets	$	53,225	$	34,613


Current portion of operating lease liabilities	$	7,293	$	6,650
Long term operating lease liabilities		47,530		29,441
Total operating lease liabilities	$	54,823	$	36,091

The increase in right-of-use assets and lease liabilities is primarily due to the commencement of the operating lease at our new warehouse facility in Georgia during the fiscal 2022 third quarter.

The weighted-average remaining lease term is 8.5 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 1.93%.

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 October 31, 2021:

	Undiscounted Future Operating Lease Payments
Remainder of 2022	$	1,796
2023		8,213
2024		6,980
2025		6,960
2026		7,032
2027 and thereafter		28,519
Total lease payments	$	59,500
Less: impact of discounting		(4,677	)
Present value of lease payments	$	54,823

As of October 31, 2021, the Company had an additional lease for a showroom in High Point, North Carolina. This lease is expected to commence in Fall of calendar 2022 with an initial lease term of 10 years and estimated future minimum rental commitments of approximately $23.7 million. Since the lease has not yet commenced, the undiscounted amounts are not included in the table above.