Leases

12 Months Ended

Jan. 29, 2023

The Company has obligations under operating leases for its store and other retail locations, distribution centers, offices, and equipment. As of January 29, 2023, the initial lease terms of the various leases generally range from two to 15 years. The majority of the Company's leases include renewal options at the sole discretion of the Company. The lease term includes options to extend or terminate the lease when it is reasonably certain those options will be exercised.

The following table details the Company's net lease expense. Certain of the Company's leases include rent escalation clauses, rent holidays, and leasehold rental incentives. The majority of the Company's leases for store premises also include contingent rental payments based on sales volume. The variable lease expenses disclosed below include contingent rent payments and other non-fixed lease related costs, including common area maintenance, property taxes, and landlord's insurance.


	2022		2021		2020
	(In thousands)
Net lease expense:
Operating lease expense	$	245,767	$	215,549	$	193,498
Short-term lease expense	16,790		12,366		11,721
Variable lease expense	114,441		90,852		60,991
	$	376,998	$	318,767	$	266,210

The following table presents future minimum lease payments by fiscal year and the impact of discounting.


	January 29, 2023
	(In thousands)
2023	$	238,343
2024	265,787
2025	197,934
2026	143,603
2027	117,639
Thereafter	210,718
Future minimum lease payments	$	1,174,024
Impact of discounting	(103,690)
Present value of lease liabilities	$	1,070,334

Balance sheet classification:
Current lease liabilities	$	207,972
Non-current lease liabilities	862,362
	$	1,070,334

As of January 29, 2023, the Company's minimum lease commitment for distribution center operating leases which have been committed to, but not yet commenced, was $632.0 million, which is not reflected in the table above.

The weighted-average remaining lease term and weighted-average discount rate were as follows:


	January 29, 2023
Weighted-average remaining lease term	5.64 years
Weighted-average discount rate	3.1	%