Leases (Notes)

3 Months Ended

May 02, 2020

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.

During the thirteen weeks ended May 2, 2020, the Company suspended rent payments for a significant number of stores, and continues to engage with its landlords. In the period during which rent was due, the Company reclassified related amounts from operating lease liability to accrued expenses, while continuing to recognize operating lease cost in the Condensed Consolidated Statement of Operations and Comprehensive Loss.

The following table provides a summary of the Company’s operating lease costs for the thirteen weeks ended May 2, 2020 and May 4, 2019:



	Thirteen Weeks Ended
(in thousands)	May 2, 2020		May 4, 2019
Single lease cost ⁽¹⁾	$	93,492	$	92,274
Variable lease cost ⁽²⁾	27,901		42,845
Operating lease right-of-use asset impairment ⁽³⁾	35,008		—
Total operating lease cost	$	156,401	$	135,119


⁽¹⁾	Includes amortization and interest expense associated with operating lease right-of-use assets and liabilities.


⁽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.


⁽³⁾	Refer to Note 9, “ASSET IMPAIRMENT,” for details related to operating lease right-of-use asset impairment charges.

As of May 2, 2020, 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 $2.6 million.