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Leases

12 Months Ended

Jan. 30, 2021

(6) Leases

At the inception of the lease, the Company’s operating leases have remaining certain lease terms of up to 10 years, which typically includes multiple options for the Company to extend the lease which are not reasonably certain.

The adoption of ASC 842 resulted in recording a non-cash transitional adjustment to ROU assets and operating lease liabilities of $183,000 and $214,000, respectively, as of February 3, 2019. The difference between the ROU assets and operating lease liabilities at transition primarily represented existing deferred rent, tenant improvement allowances and prepaid rent of $14,200, $20,600 and $3,800, respectively, which were recorded as a component of the ROU asset in connection with the non-cash transitional adjustment. As a result of the adoption of ASC 842, the Company also recorded an increase to retained earnings of $9,300, net of tax, as of February 3, 2019, in relation to the accelerated recognition of a deferred lease gain, and derecognition of the related deferred tax asset, which the Company was amortizing relating to the historical sales of owned properties it currently leases.

In the fiscal year ended January 30, 2021, the Company recorded a non-cash increase of $39,119, to ROU assets and operating lease liabilities resulting from lease remeasurements from the exercise of lease extension options, acquired leases, and new leases added.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In accordance with ASC 842, total lease expense, including common area maintenance (CAM), recorded during the fiscal year ended January 30, 2021, and February 1, 2020 was $68,012 and $59,846, respectively.

In accordance with ASC 842, other information related to leases was as follows:


	Fiscal Year Ended
	January 30,		February 1,
	2021		2020
Operating cash flows from operating leases	$	(55,765)	$	(49,713)
Cash paid for amounts included in the measurement of lease liabilities - operating leases		(55,765)		(49,713)

	As of January 30,		As of February 1
	2021		2020

Right-of-use assets obtained in exchange for new or remeasured operating lease liabilities	$	39,119	$	66,095
Terminated right-of-use assets and liabilities	$	(2,947)	$	—
Weighted-average remaining lease term - operating leases		6.09		6.26
Weighted-average discount rate - operating leases		8.35%		8.00%

In accordance with ASC 842, maturities of operating lease liabilities as of January 30, 2021 were as follows:


	Operating
Year Endings:	Leases
2021	$	57,782
2022		55,506
2023		50,555
2024		42,138
2025		35,578
Thereafter		138,093
Undiscounted cash flows	$	379,652
Reconciliation of lease liabilities:
Present values	$	264,310
Lease liabilities - current		36,014
Lease liabilities - noncurrent		228,296
Lease liabilities - total	$	264,310
Difference between undiscounted and discounted cash flows	$	115,342

The Company has excluded in the table above approximately $2.2 million of leases (undiscounted basis) that have not yet commenced. These leases will commence in 2021 with lease terms of ten years.