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LEASES

12 Months Ended

Jan. 30, 2022

NOTE 10 – LEASES

In fiscal 2020, we adopted Accounting Standards Codification Topic 842 Leases. We have a sub-lease at one of our warehouses and we recognized sub-lease income of $890,000, $576,000 and $405,000 in fiscal 2022, fiscal 2021 and fiscal 2020, respectively.

The components of lease cost and supplemental cash flow information for leases in fiscal 2022, 2021 and 2020 were:

	Fifty-two Weeks Ended
	January 30, 2022		January 31, 2021		February 2, 2020
Operating lease cost	$	8,144	$	8,367	$	8,408
Variable lease cost		208		146		153
Short-term lease cost		117		291		581
Total operating lease cost	$	8,469	$	8,804	$	9,142


Operating cash outflows	$	7,730	$	7,921	$	8,725

The right-of-use assets and lease liabilities recorded on our Consolidated Balance Sheets as of January 30, 2022 and January 31, 2021 were:

	January 30, 2022		January 31, 2021
Real estate	$	50,749	$	33,651
Property and equipment		1,105		962
Total operating leases right-of-use assets	$	51,854	$	34,613


Current portion of operating lease liabilities	$	7,471	$	6,650
Long term operating lease liabilities		46,570		29,441
Total operating lease liabilities	$	54,041	$	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. Weighted-average remaining lease term is 8.3 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 1.91%.

The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the consolidated balance sheet at January 30, 2022:

Fiscal Year	Undiscounted Future Operating Lease Payments
2023	$	8,414
2024		7,098
2025		7,140
2026		7,213
2027		6,850
2028 and thereafter		21,805
Total lease payments	$	58,520
Less: impact of discounting		(4,479	)
Present value of lease payments	$	54,041

As of January 30, 2022, 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.