XML 35 R20.htm IDEA: XBRL DOCUMENT

LEASES

12 Months Ended

Jan. 29, 2023

NOTE 12 – 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 $445,000, $890,000, and $576,000 in fiscal 2023, fiscal 2022, and fiscal 2021, respectively.

The components of lease cost and supplemental cash flow information for leases in fiscal 2023, 2022 and 2021 were:

	Fifty-two Weeks Ended
	January 29, 2023		January 30, 2022		January 31, 2021
Operating lease cost	$	9,908	$	8,144	$	8,367
Variable lease cost		234		208		146
Short-term lease cost		327		117		291
Total operating lease cost	$	10,469	$	8,469	$	8,804

Operating cash outflows	$	10,527	$	7,730	$	7,921

The right-of-use assets and lease liabilities recorded on our Consolidated Balance Sheets as of January 29, 2023 and January 30, 2022 were:

Current portion of operating lease liabilities	$	7,316	$	7,471
Long term operating lease liabilities		63,762		46,570
Total operating lease liabilities	$	71,078	$	54,041

For leases that commenced before July 2022, we used our incremental borrowing rate which was LIBOR plus 1.5%. When we entered into the new loan agreement our incremental borrowing rate for unsecured term loan became the current BSBY rate plus 1.40%. We use this rate as discount rate for leases commenced in July 2022 and thereafter. The weighted-average discount rate is 4.00%. The weighted-average remaining lease term is 8.0 years.

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 29, 2023:

Fiscal Year	Undiscounted Future Operating Lease Payments
2024	$	9,995
2025		10,102
2026		10,182
2027		10,267
2028		8,931
2029 and thereafter		35,131
Total lease payments	$	84,608
Less: impact of discounting		(13,530	)
Present value of lease payments	$	71,078

As of January 29, 2023, the Company had an additional lease for a showroom in Atlanta, Georgia. This lease is expected to commence in May of calendar 2023 with an initial lease term of 3 years and estimated future minimum rental commitments of approximately $1.0 million. Since the lease has not yet commenced, the undiscounted amounts are not included in the table above.