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Leases | 3 Months Ended
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Aug. 02, 2020
Assets And Liabilities Lessee [Abstract] |
Leases | 17. Leases Overview We lease manufacturing facilities, office space, distribution centers, and equipment under operating lease arrangements. We determine if an arrangement is a lease at its inception if it conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Operating leases with an initial term of 12 months or less are not recognized in our Consolidated Balance Sheets. We recognize a right of use asset and lease liability on the commencement date of a lease arrangement based on the present value of lease payments over the lease term. Our operating leases have remaining lease terms of 1 to 6 years, with renewal options for additional periods ranging up to 10 years. A lease term may include renewal options if it is reasonably certain that the option to renew a lease period will be exercised. A renewal option is considered reasonably certain to be exercised if there is a significant economic incentive, as defined in ASC Topic 842, to exercise the renewal option on the date a lease arrangement is commenced. Currently, renewal options are not included in the lease terms for any of our leases, as there is not a significant economic incentive for us to exercise any of our renewal options. Most of our leases do not provide an implicit interest rate, and as a result, we use our incremental borrowing rate based on information available on the commencement date of a lease arrangement in determining the present value of lease our payments. Balance Sheet The right of use asset and lease liabilities associated with our operating leases as of August 2, 2020, August 4, 2019, and May 3, 2020, are as follows:
|  |  |  |  |  | (1) |  |  |  |  |
(dollars in thousands) |  | August 2, 2020 |  |  | August 4, 2019 |  |  | May 3, 2020 |
Right of use asset |  | $ | 6,443 |  |  | $ | 6,530 |  |  | $ | 3,903 |
Operating lease liability - current |  |  | 2,387 |  |  |  | 2,456 |  |  |  | 1,805 |
Operating lease liability – noncurrent |  |  | 4,214 |  |  |  | 3,955 |  |  |  | 2,016 |
(1) | As of August 4, 2019, right of use assets totaled $6.5 million, of which $5.5 million and $1.0 million were classified as right of use asset and within noncurrent assets – discontinued operation, respectively, in the accompanying Consolidated Balance Sheet. At August 4, 2019, operating lease liabilities totaled $6.4 million, of which $2.3 million, $186,000, $3.1 million, and $874,000 were classified as operating lease liability – current, within current liabilities – discontinued operation, operating lease liability – long-term, and within noncurrent liabilities – discontinued operation, respectively, in the accompanying Consolidated Balance Sheet.
Supplemental Cash Flow Information
|  | Three Months Ended |
(dollars in thousands) |  | August 2, 2020 |
Operating lease liability payments |  | $ | 445 |
Right of use assets exchanged for lease liabilities |  |  | 3,154 |
During the three-month period ending August 2, 2020, we entered into agreements that extended the lease term for two buildings associated with our upholstery fabrics operations located in China through December 2024, resulting in $2.6 million of additional right of use assets and lease liabilities. Also, we entered into a new agreement to lease a warehouse associated with our mattress fabrics operations in Canada. This lease agreement has a three-year term that is set to expire in June 2023, resulting in a $550,000 additional right of use assets and lease liability.
|  | Three Months Ended |
(dollars in thousands) |  | August 4, 2019 |
Operating lease liability payments |  | $ | 657 |
Right of use assets exchanged for lease liabilities |  |  | — |
Operating lease expense for the three-months ended August 2, 2020, and August 4, 2019, was $658,000 and $719,000, respectively. Short-term lease and variable lease expenses were immaterial for the three-months ended August 2, 2020, and August 4, 2019. Other Information Maturity of our operating lease liabilities for the remainder of fiscal 2021, the subsequent next four fiscal years, and thereafter follows:
(dollars in thousands) |  |  |  |
2021 |  | $ | 2,050 |
2022 |  |  | 1,765 |
2023 |  |  | 1,350 |
2024 |  |  | 1,079 |
2025 |  |  | 663 |
Thereafter |  |  | — |
|  | $ | 6,907 |
Less: interest |  |  | (306 | )
Present value of lease liabilities |  | $ | 6,601 |
As of August 2, 2020, the weighted average remaining lease term and discount rate for our operating leases follows:
|  | August 2, 2020 |
Weighted average lease term |  | 3.5 years |
Weighted average discount rate |  |  | 2.78 | %
As of August 4, 2019, the weighted average remaining lease term and discount rate for our operating leases follows:
|  | August 4, 2019 |
Weighted average lease term |  | 3.5 years |
Weighted average discount rate |  |  | 3.82 | %

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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