Leases

3 Months Ended

May 02, 2021

ASU 2016-02 Transition [Abstract]

Lessee, Operating Lease, Disclosure [Table Text Block]

8.          Leases

In fiscal 2020, we adopted Accounting Standards Codification Topic 842 Leases. We recognized $146,000 sub-lease income for the three-month period ended May 2, 2021. The components of lease cost and supplemental cash flow information for leases for the three-months ended May 2, 2021 were:

	Thirteen Weeks Ended
	May 2, 2021		May 3, 2020
Operating lease cost	$	2,013	$	2,100
Variable lease cost		44		46
Short-term lease cost		19		116
Total operating lease cost	$	2,076	$	2,262
Operating cash outflows	$	1,992	$	1,852

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

	May 2, 2021		January 31, 2021
Real estate	$	31,918	$	33,651
Property and equipment		882		962
Total operating leases right-of-use assets	$	32,800	$	34,613
Current portion of operating lease liabilities	$	6,381	$	6,650
Long term operating lease liabilities		27,980		29,441
Total operating lease liabilities	$	34,361	$	36,091

The weighted-average remaining lease term is 6.6 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 2.2%.

The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on May 2, 2021:

	Undiscounted Future Operating Lease Payments
Remainder of 2022	$	5,436
2023		5,593
2024		5,665
2025		5,281
2026		5,336
2027 and thereafter		9,809
Total lease payments	$	37,120
Less: impact of discounting		(2,759	)
Present value of lease payments	$	34,361

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. None of the modifications had a material effect on our condensed consolidated financial statements or results of operations. As of May 2, 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 an initial lease term of 10 years. Since the lease has not commenced, the undiscounted amounts are not included in the table above.