Leases

12 Months Ended

Jan. 29, 2022

Leases

Leases

8. Leases

The Company leases its retail store locations and certain office space and equipment. Leases for store locations are typically for a term of five years with options to extend for one or more five-year periods. The Company analyzes all leases at inception to determine if a right-of-use asset and lease liability should be recognized. Leases with an initial term of 12 months or less and leases with mutual termination clauses are not included on the consolidated balance sheets. The lease liability is measured at the present value of future lease payments as of the lease commencement date.

Total lease cost is comprised of operating lease costs, short-term lease costs and variable lease costs, which include rent paid as a percentage of sales, common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Lease costs consisted of the following (in thousands):

	Fiscal Year
	2021		2020
Operating lease cost	$	52,737	$	50,446
Variable lease cost		10,938		8,159
Short term lease cost		1,091		1,459
Total lease cost	$	64,766	$	60,064

In response to the impact of the COVID-19 pandemic on the Company’s operations in fiscal 2020, the Company suspended certain lease payments under its existing lease agreements. During the suspension of payments, the Company continued to recognize expenses and liabilities for lease obligations and corresponding right-of-use assets on the balance sheet in accordance with the applicable accounting guidance. The Company negotiated contractual rent concessions on certain leases in the form of early renewals, rent deferrals and rent abatements. The Company elected to account for qualifying COVID-19 related rent concessions as if they were part of the enforceable rights and obligations under the existing lease agreements, as permitted by the updated guidance provided by the FASB in April 2020. As a result of this election, the Company recognized rent abatement credits of approximately $0.7 million and

$1.0 million in fiscal 2021 and 2020, respectively. The balance of accrued lease liabilities related to these suspended payments was $0.4 million at January 29, 2022.

Future minimum lease payments as of January 29, 2022 are as follows (in thousands):

Fiscal Year	Lease Costs
2022	$	53,317
2023		50,918
2024		42,114
2025		31,622
2026		21,246
Thereafter		34,818
Total future minimum lease payments		234,035
Less: imputed interest		(17,928)	(1)
Total present value of lease liabilities	$	216,107	(2)

(1) Calculated using the discount rate for each lease.

(2) Includes short-term and long-term portions of operating leases.

Certain operating leases provide for fixed monthly rents, while others provide for contingent rents computed as a percentage of net sales and others provide for a combination of both fixed monthly rents and contingent rents computed as a percentage of net sales.

Supplemental cash flow and other information related to operating leases are as follows (in thousands, except for weighted average amounts):

	Fiscal Year
	2021		2020
Cash paid for operating leases	$	56,932	$	47,075
Right of use assets obtained in exchange for new operating lease liabilities	$	75,359	$	60,144
Weighted average remaining lease term (years) - operating leases		5.32		5.12
Weighted average discount rate - operating leases		2.86%		3.11%