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Leases (Notes)

6 Months Ended

Aug. 03, 2019

Leases of Lessee Disclosure [Text Block]

The Company has leases related to its Company-operated retail stores as well as for certain of its distribution centers, office space, information technology and equipment.

The following table provides a summary of the Company’s operating lease costs for the thirteen and twenty-six weeks ended August 3, 2019:



(in thousands)	Thirteen Weeks Ended		Twenty-six Weeks Ended
Single lease cost ⁽¹⁾	$	121,270	$	213,544
Variable lease cost ⁽²⁾	60,238		103,083
Operating lease right-of-use asset impairment ⁽³⁾	3,589		3,589
Total operating lease cost	$	185,097	$	320,216


⁽¹⁾	Includes amortization and interest expense associated with operating lease right-of-use assets and liabilities. Includes $23.3 million of charges related to flagship store exit charges for each of the thirteen and twenty-six weeks ended August 3, 2019. Refer to Note 14, “FLAGSHIP STORE EXIT CHARGES.”

⁽²⁾

Includes variable payments related to both lease and nonlease components, such as contingent rent payments made by the Company based on performance, and payments related to taxes, insurance, and maintenance costs. Includes $20.2 million of charges related to flagship store exit charges for each of the thirteen and twenty-six weeks ended August 3, 2019. Refer to Note 14, “FLAGSHIP STORE EXIT CHARGES.”


⁽³⁾	Includes $3.2 million of charges related to flagship store exit charges for each of the thirteen and twenty-six weeks ended August 3, 2019. Refer to Note 14, “FLAGSHIP STORE EXIT CHARGES.”

The following table provides the weighted-average remaining lease term of the Company’s operating leases and the weighted-average discount rates used to calculate the Company’s operating lease liabilities as of August 3, 2019:



	August 3, 2019
Weighted-average remaining lease term (years)	6.3
Weighted-average discount rate	5.5	%

The following table provides a maturity analysis of the Company’s operating lease liabilities, based on undiscounted cash flows, as of August 3, 2019:



(in thousands)
Fiscal 2019 (excluding the twenty-six weeks ended August 3, 2019)	$	173,786
Fiscal 2020	342,672
Fiscal 2021	293,971
Fiscal 2022	245,215
Fiscal 2023	202,561
Fiscal 2024 and thereafter	531,374
Total undiscounted operating lease payments	$	1,789,579
Less: Imputed interest	(285,981		)
Present value of operating lease liabilities	$	1,503,598

As of August 3, 2019, the Company had minimum commitments related to additional operating lease contracts that have not yet commenced, primarily for its Company-operated retail stores, of approximately $28.1 million.

As reported under the previous accounting standard, the following table provides a summary of operating lease commitments, including leasehold financing obligations, under noncancelable leases as of February 2, 2019:



(in thousands)
Fiscal 2019	$	367,622
Fiscal 2020	$	304,270
Fiscal 2021	$	205,542
Fiscal 2022	$	159,617
Fiscal 2023	$	128,626
Fiscal 2024 and thereafter	$	310,003