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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.