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Leases

9 Months Ended

Oct. 30, 2021

(6) Leases

At the inception of the lease, the Company’s operating leases have certain lease terms of up to 13 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 and 39 weeks ended October 30, 2021, the Company recorded a non-cash increase of $3,536 and $27,979, respectively, 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 and 39 weeks ended October 30, 2021 was $18,936 and $55,675, respectively. In accordance with ASC 842, total lease expense, including CAM, recorded during the 13 and 39 weeks ended October 31, 2020 was $17,068 and $50,270, respectively.

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


	Thirty-Nine Weeks Ended
	October 30,		October 31,
	2021		2020
Operating cash flows from operating leases	$	(44,094)	$	(41,257)
Cash paid for amounts included in the measurement of lease liabilities - operating leases		(44,094)		(41,257)

	As of October 30,		As of October 31,
	2021		2020

Right-of-use assets obtained in exchange for new or remeasured operating lease liabilities	$	27,979	$	33,392
Terminated right-of-use assets and liabilities		—		(3,202)
Weighted-average remaining lease term - operating leases		5.83		5.11
Weighted-average discount rate - operating leases		8.29%		8.09%

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


	Operating
Year Endings:	Leases
2021 (remainder)	$	15,408
2022		62,128
2023		57,161
2024		48,485
2025		41,925
Thereafter		164,227
Undiscounted cash flows	$	389,334
Reconciliation of lease liabilities:
Present values	$	271,288
Lease liabilities - current		39,790
Lease liabilities - noncurrent		231,498
Lease liabilities - total	$	271,288
Difference between undiscounted and discounted cash flows	$	118,046