LEASES

6 Months Ended

Jul. 30, 2022

The Company has operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. The Company’s leases have remaining lease terms ranging from less than one year up to ten years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the lease early. The Company records all occupancy costs in Cost of sales, except costs for administrative office buildings, which are recorded in Selling, general, and administrative expenses. As of the periods presented, the Company’s finance leases were not material to the Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows.

The following components of operating lease expense were recognized in the Company’s Consolidated Statements of Operations:


	Thirteen Weeks Ended				Twenty-six Weeks Ended
	July 30, 2022		July 31, 2021		July 30, 2022		July 31, 2021
	(in thousands)
Fixed operating lease cost	$	24,070	$	24,272	$	47,040	$	50,030
Variable operating lease cost (1)	12,573		10,847		27,691		14,221
Total operating lease cost	$	36,643	$	35,119	$	74,731	$	64,251

____________________________________________

(1)Includes short term leases with lease periods of less than 12 months as well as lease abatements accounted for as reductions to variable lease costs under the COVID-19 expedient of $0.1 million and $2.3 million during the Second Quarter 2022 and Second Quarter 2021, and $0.9 million and $10.3 million during Year-To-Date 2022 and Year-To-Date 2021, respectively.

As of July 30, 2022, the weighted-average remaining operating lease term was 4.3 years, and the weighted-average discount rate for operating leases was 4.9%. Cash paid for amounts included in the measurement of operating lease liabilities during Year-To-Date 2022 was $47.9 million. ROU assets obtained in exchange for new operating lease liabilities were $22.6 million during Year-To-Date 2022.

As of July 30, 2022, the maturities of operating lease liabilities were as follows:


	July 30, 2022
	(in thousands)
Remainder of 2022	$	54,762
2023	61,015
2024	30,536
2025	18,021
2026	15,205
Thereafter	30,664
Total operating lease payments	210,203
Less: imputed interest	(18,828)
Present value of operating lease liabilities	$	191,375