Leases (Notes)

9 Months Ended

Nov. 02, 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 thirty-nine weeks ended November 2, 2019:



(in thousands)	Thirteen Weeks Ended		Thirty-nine Weeks Ended
Single lease cost ⁽¹⁾	$	104,726	$	318,270
Variable lease cost ⁽²⁾	25,990		129,073
Operating lease right-of-use asset impairment ⁽³⁾	9,047		12,636
Total operating lease cost	$	139,763	$	459,979


⁽¹⁾	Includes amortization and interest expense associated with operating lease right-of-use assets and liabilities. Includes $23.3 million of charges included in flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirty-nine weeks ended November 2, 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 included in flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirty-nine weeks ended November 2, 2019. Refer to Note 14, “FLAGSHIP STORE EXIT CHARGES.”


⁽³⁾	Includes $3.2 million of asset charges included in flagship store exit charges on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirty-nine weeks ended November 2, 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 November 2, 2019:



	November 2, 2019
Weighted-average remaining lease term (years)	6.1
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 November 2, 2019:



(in thousands)
Fiscal 2019 (excluding the thirty-nine weeks ended November 2, 2019)	$	76,951
Fiscal 2020	371,357
Fiscal 2021	311,061
Fiscal 2022	262,530
Fiscal 2023	219,723
Fiscal 2024 and thereafter	560,067
Total undiscounted operating lease payments	$	1,801,689
Less: Imputed interest	(282,493		)
Present value of operating lease liabilities	$	1,519,196

As of November 2, 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 $22.5 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
Total	$	1,475,680