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Leases

3 Months Ended

May 01, 2021

(6) Leases

At the inception of the lease, the Company’s operating leases have 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 and as such are excluded from the measurement of the right of use asset and liability.

The Company determines whether a contract is or contains a lease at contract inception. As the rate implicit in the lease is not readily determinable in most of the Company’s leases, it uses its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The operating lease asset also includes any fixed lease payments made and includes lease incentives and incurred initial direct costs. Operating lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Company’s lease terms may include options to extend or terminate the lease. Additionally, the Company’s leases do not contain any material residual guarantees or material restrictive covenants.

In the 13 weeks ended May 1, 2021, the Company recorded a non-cash increase of $5,559 to the right of use assets and operating lease liabilities resulting from lease remeasurements from the exercise of lease extension options, acquired leases, and new leases added.

In accordance with ASC 842, total lease expense, including common area maintenance (“CAM”), recorded during the 13 weeks ended May 1, 2021 was $18,398. In accordance with ASC 842, total lease expense, including CAM, recorded during the 13 weeks ended May 2, 2020 was $16,547.

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


	Thirteen Weeks Ended
	May 1,		May 2,
	2021		2020
Operating cash flows from operating leases	$	(14,561)	$	(13,464)
Cash paid for amounts included in the measurement of lease liabilities - operating leases		(14,561)		(13,464)

	As of May 1,		As of May 2,
	2021		2020

Right-of-use assets obtained in exchange for new or remeasured operating lease liabilities	$	5,559	$	5,352
Terminated right-of-use assets and liabilities		—		(3,202)
Weighted-average remaining lease term - operating leases		5.96		6.12
Weighted-average discount rate - operating leases		8.39%		8.03%

In accordance with ASC 842, maturities of operating lease liabilities as of May 1, 2021 were as follows:


	Operating
Year Endings:	Leases
2021 (remainder)	$	44,324
2022		58,207
2023		53,256
2024		44,839
2025		38,279
Thereafter		145,146
Undiscounted cash flows	$	384,051
Reconciliation of lease liabilities:
Present values	$	262,606
Lease liabilities - current		36,386
Lease liabilities - noncurrent		226,220
Lease liabilities - total	$	262,606
Difference between undiscounted and discounted cash flows	$	121,445