LEASES

12 Months Ended

Jan. 31, 2021

ASU 2016-02 Transition [Abstract]

Lessee, Operating Lease, Disclosure [Table Text Block]

NOTE 11 – LEASES

In fiscal 2020, we adopted Accounting Standards Codification Topic 842 Leases. We have a sub-lease at one of our warehouses and we recognized $576,000 sub-lease income in fiscal 2021.

The components of lease cost and supplemental cash flow information for leases in fiscal 2021 were:

	Fifty-two Weeks Ended
	January 31, 2021		February 2, 2020
Operating lease cost	$	8,367	$	8,408
Variable lease cost		146		153
Short-term lease cost		291		581
Total operating lease cost	$	8,804	$	9,142
Operating cash outflows	$	7,921	$	8,725

The right-of-use assets and lease liabilities recorded on our Consolidated Balance Sheets as of January 31, 2021 and February 2, 2020 were:

	January 31, 2021		February 2, 2020
Real estate	$	33,651	$	38,175
Property and equipment		962		1,337
Total operating leases right-of-use assets	$	34,613	$	39,512
Current portion of operating lease liabilities	$	6,650	$	6,307
Long term operating lease liabilities		29,441		33,794
Total operating lease liabilities	$	36,091	$	40,101

Weighted-average remaining lease term is 6.7 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 2.25%. Due to the COVID-19 pandemic, we received concessions on several of our leases, including changes in lease terms and deferred rent payments. We accounted for the concessions as lease modifications and used current LIBOR plus 1.5% for those leases. The weighted-average discount rate decreased due to a decrease in LIBOR.

The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the consolidated balance sheet at January 31, 2021:

	Undiscounted Future Operating Lease Payments
2022	$	7,364
2023		5,591
2024		5,663
2025		5,280
2026		5,336
2027 and thereafter		9,808
Total lease payments	$	39,042
Less: impact of discounting		(2,951	)
Present value of lease payments	$	36,091

As of January 31, 2021, the Company had an additional lease for a warehouse in Georgia that had not yet commenced with estimated future minimum rental commitments of approximately $28 million. This lease is expected to commence in Fall of 2021 with a lease term of up to 10 years. Since the lease has not commenced, the undiscounted amounts are not included in the table above.