Leases

6 Months Ended

Jul. 31, 2021

Leases [Abstract]

Leases

Leases

ROU lease assets are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall, to determine when to test ROU assets (or asset groups that contain one or more ROU assets for impairment), whether ROU assets are impaired, and if so, the amount of the impairment loss to recognize. An asset group impairment charge of approximately $0.1 million and $0.5 million was recognized in the 13-weeks ended July 31, 2021 and August 1, 2020, respectively. An asset group impairment charge of approximately $0.5 million and $4.6 million was recognized in the 26-weeks ended July 31, 2021 and August 1, 2020, respectively.

Lease costs are as follows (in thousands):

	13-Weeks Ended				26-Weeks Ended
	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020
Operating lease cost	$	15,679	$	16,629	$	30,561	$	33,769
Finance lease cost:
Amortization of assets	235		244		414		479
Interest on lease liabilities	38		46		79		94
Variable lease cost	5,056		1,555		10,921		347
	$	21,008	$	18,474	$	41,975	$	34,689

Finance ROU assets on the unaudited condensed consolidated balance sheets at July 31, 2021, January 30, 2021, and August 1, 2020 are shown net of accumulated amortization of $2.1 million, $1.7 million, and $1.0 million, respectively.

The following table provides supplemental balance sheet information related to leases:

	July 31, 2021		January 30, 2021		August 1, 2020
Weighted-average remaining lease term (in years):
Operating leases	5		5		5
Finance leases	3		4		4
Weighted-average discount rate:
Operating leases	3.4	%	3.5	%	3.8	%
Finance leases	5.3	%	5.5	%	7.4	%

The following table provides supplemental cash flow and other information related to leases (in thousands):

	26-Weeks Ended
	July 31, 2021		August 1, 2020
Operating cash flows from operating leases	$	37,166	$	37,827
Operating cash flows from finance leases	$	79	$	94
Financing cash flows from finance leases	$	482	$	517
ROU assets obtained in exchange for lease obligations, net:
Operating leases	$	36,509	$	29,158
Finance leases	$	68	$	789

Maturities of lease obligation as of July 31, 2021 (in thousands):

	Operating		Finance		Total
Remainder of Fiscal 2022	$	31,379	$	561	$	31,940
Fiscal 2023	68,822		1,095		69,917
Fiscal 2024	55,187		980		56,167
Fiscal 2025	42,572		397		42,969
Fiscal 2026	30,614		302		30,916
Thereafter	45,227		42		45,269
Total minimum lease payments	273,801		3,377		277,178
Less amount representing interest	22,633		236		22,869
	$	251,168	$	3,141	$	254,309

As of July 31, 2021, we have entered into approximately $12.3 million of operating lease obligations related to future store locations that have not yet commenced.

Leases

Leases

ROU lease assets are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall, to determine when to test ROU assets (or asset groups that contain one or more ROU assets for impairment), whether ROU assets are impaired, and if so, the amount of the impairment loss to recognize. An asset group impairment charge of approximately $0.1 million and $0.5 million was recognized in the 13-weeks ended July 31, 2021 and August 1, 2020, respectively. An asset group impairment charge of approximately $0.5 million and $4.6 million was recognized in the 26-weeks ended July 31, 2021 and August 1, 2020, respectively.

Lease costs are as follows (in thousands):

	13-Weeks Ended				26-Weeks Ended
	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020
Operating lease cost	$	15,679	$	16,629	$	30,561	$	33,769
Finance lease cost:
Amortization of assets	235		244		414		479
Interest on lease liabilities	38		46		79		94
Variable lease cost	5,056		1,555		10,921		347
	$	21,008	$	18,474	$	41,975	$	34,689

Finance ROU assets on the unaudited condensed consolidated balance sheets at July 31, 2021, January 30, 2021, and August 1, 2020 are shown net of accumulated amortization of $2.1 million, $1.7 million, and $1.0 million, respectively.

The following table provides supplemental balance sheet information related to leases:

	July 31, 2021		January 30, 2021		August 1, 2020
Weighted-average remaining lease term (in years):
Operating leases	5		5		5
Finance leases	3		4		4
Weighted-average discount rate:
Operating leases	3.4	%	3.5	%	3.8	%
Finance leases	5.3	%	5.5	%	7.4	%

The following table provides supplemental cash flow and other information related to leases (in thousands):

	26-Weeks Ended
	July 31, 2021		August 1, 2020
Operating cash flows from operating leases	$	37,166	$	37,827
Operating cash flows from finance leases	$	79	$	94
Financing cash flows from finance leases	$	482	$	517
ROU assets obtained in exchange for lease obligations, net:
Operating leases	$	36,509	$	29,158
Finance leases	$	68	$	789

Maturities of lease obligation as of July 31, 2021 (in thousands):

	Operating		Finance		Total
Remainder of Fiscal 2022	$	31,379	$	561	$	31,940
Fiscal 2023	68,822		1,095		69,917
Fiscal 2024	55,187		980		56,167
Fiscal 2025	42,572		397		42,969
Fiscal 2026	30,614		302		30,916
Thereafter	45,227		42		45,269
Total minimum lease payments	273,801		3,377		277,178
Less amount representing interest	22,633		236		22,869
	$	251,168	$	3,141	$	254,309

As of July 31, 2021, we have entered into approximately $12.3 million of operating lease obligations related to future store locations that have not yet commenced.