LEASES LEASES (Tables)

3 Months Ended

Nov. 02, 2019

Schedule of Leases, Financial Statement Presentation

Lease assets and liabilities are as follows (in thousands):



Lease Type	Balance Sheet Location	November 2, 2019
Operating lease assets	Operating lease assets	$	1,051,128
Finance lease assets	Property and equipment, net	68,429
Total lease assets		$	1,119,557

Operating liabilities	Current portion of operating lease liabilities	$	127,327
Finance liabilities	Current portion of long-term debt and finance lease liabilities	15,239
Operating liabilities	Long-term operating lease liabilities	949,978
Finance liabilities	Long-term finance lease liabilities	68,682
Total lease liabilities		$	1,161,226

Schedule of Lease Costs

The Company's lease cost under ASC 842 for the 13-week period ended November 2, 2019 is as follows:



(in thousands)	Statement of Operations Location	13-Week Period Ended
(in thousands)	Statement of Operations Location	November 2, 2019
Operating lease cost	Operating expenses	$	67,141
Short-term lease cost	Operating expenses	10,514
Variable lease cost	Operating expenses	34,956
Sublease income	Operating expenses	(10,940		)
Sublease income	Net sales	(4,835		)
Net operating lease cost⁽¹⁾		96,836
Amortization of leased assets	Operating expenses	4,703
Interest on lease liabilities	Interest expense, net	2,118
Finance lease cost		6,821
Total net lease cost		$	103,657

(1)

Rent expense as presented here includes $12.5 million of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as the Company expects to remain primarily obligated under these leases

The following tables provide other information required by ASC 842:



Lease Term and Discount Rate	November 2, 2019
Weighted-average remaining lease term (years)
Operating leases	11.1 years
Finance leases	5.7 years
Weighted-average discount rate
Operating leases	10.7	%
Finance leases	9.9	%



Other Information	13-Week Period Ended
(in thousands)	November 2, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	55,750
Operating cash flows from finance leases	1,880
Financing cash flows from finance leases	3,074
Leased assets obtained in exchange for new finance lease liabilities	—
Leased assets obtained in exchange for new operating lease liabilities	37,020

Future Minimum Lease Payments and Lease Receipts (New Accounting Standard)

As of November 2, 2019, these lease obligations and lease receipts consisted of the following (in thousands):



Maturity of Lease Liabilities and Lease Receipts	Lease Liabilities						Lease Receipts						Net Lease Obligations
Fiscal Year	Operating Leases⁽¹⁾			Finance Leases⁽²⁾			Operating Leases			Finance Leases			Operating Leases		Finance Leases
Remaining fiscal 2020	$	187,380		$	18,874		$	(43,449	)	$	(161	)	$	143,931	$	18,713
2021	209,552			19,252			(46,516		)	—			163,036		19,252
2022	198,343			17,760			(41,562		)	—			156,781		17,760
2023	171,756			16,653			(31,360		)	—			140,396		16,653
2024	145,338			15,702			(24,236		)	—			121,102		15,702
Thereafter	1,050,386			21,526			(55,542		)	—			994,844		21,526
Total undiscounted lease liabilities and receipts	$	1,962,755		$	109,767		$	(242,665	)	$	(161	)	$	1,720,090	$	109,606
Less interest ⁽³⁾	(885,450		)	(25,846		)
Present value of lease liabilities	1,077,305			83,921
Less current lease liabilities	(127,327		)	(15,239		)
Long-term lease liabilities	$	949,978		$	68,682


(1)	Operating lease payments include $14.7 million related to extension options that are reasonably certain of being exercised and exclude $48.5 million of legally binding minimum lease payments for leases signed but not yet commenced.


(2)	Finance lease payments include $0.0 million related to extension options that are reasonably certain of being exercised and exclude $0.0 million of legally binding minimum lease payments for leases signed but not yet commenced.

(3)

Calculated using the interest rate for each lease.

Future Minimum Lease Payments and Lease Receipts (Prior Accounting Standard)

As of August 3, 2019, future minimum lease payments to be made by the Company or certain third parties in the case of assigned leases for noncancellable operating leases and finance leases, which have not been reduced for future minimum subtenant rentals under certain operating subleases, including assignments, consisted of the following amounts (in thousands):



	Lease Obligations					Lease Receipts						Net Lease Obligations
Fiscal Year	Operating Leases		Capital Leases			Operating Leases			Capital Leases			Operating Leases		Capital Leases
2020	$	223,612	$	41,550		$	(55,922	)	$	(319	)	$	167,690	$	41,231
2021	190,845		32,804			(41,425		)	—			149,420		32,804
2022	179,326		29,869			(35,998		)	—			143,328		29,869
2023	154,812		26,699			(25,591		)	—			129,221		26,699
2024	135,795		23,095			(18,183		)	—			117,612		23,095
Thereafter	1,063,674		46,999			(59,186		)	—			1,004,488		46,999
Total future minimum obligations (receipts)	$	1,948,064	$	201,016		$	(236,305	)	$	(319	)	$	1,711,759	$	200,697
Less interest			(68,138		)
Present value of capital lease obligations			132,878
Less current capital lease obligations			(24,670		)
Long-term capital lease obligations			$	108,208