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Leases (Tables)
12 Months Ended
Jan. 30, 2021
Leases  
Summary of Lease Costs-Net

Lease costs—net consist of the following (in thousands):

YEAR ENDED

JANUARY 30,

    

FEBRUARY 1,

    

FEBRUARY 2, 

    

2021

    

2020

    

2019 

Operating lease cost (1)

$

84,852

$

86,448

$

87,742

Finance lease costs

Amortization of leased assets (1)

41,292

36,991

28,848

Interest on lease liabilities (2)

24,011

22,608

16,785

Variable lease costs (3)

20,485

23,471

21,889

Sublease income (4)

(7,723)

(9,609)

(7,794)

Total lease costs—net

$

162,917

$

159,909

$

147,470

(1)Operating lease costs and amortization of finance lease right-of-use assets are included in cost of goods sold or selling, general and administrative expenses on the consolidated statements of income based on our accounting policy. Refer to Note 3—Significant Accounting Policies.
(2)Included in interest expense—net on the consolidated statements of income.
(3)Represents variable lease payments under operating and finance lease agreements, primarily associated with contingent rent based on a percentage of retail sales over contractual levels of $13.4 million, $14.6 million and $13.0 million, respectively, and charges associated with common area maintenance of $7.1 million, $8.9 million and $8.9 million in fiscal 2020, fiscal 2019 and fiscal 2018, respectively. Other variable costs include single lease cost related to variable lease payments based on an index or rate that were not included in the measurement of the initial lease liability and right-of-use asset were not material in fiscal 2020, fiscal 2019 and fiscal 2018.
(4)Included as an offset to selling, general and administrative expenses on the consolidated statements of income.
Summary of Lease Right-of-use Assets and Lease Liabilities

Lease right-of-use assets and lease liabilities consist of the following (in thousands):

JANUARY 30,

FEBRUARY 1, 

   

2021

   

2020 

Balance Sheet Classification

Assets

Operating leases

Operating lease right-of-use assets

$

456,164

$

410,904

Finance leases (1)(2)

Property and equipment—net

711,804

642,117

Total lease right-of-use assets

$

1,167,968

$

1,053,021

Liabilities

Current (3)

Operating leases

Operating lease liabilities

$

71,524

$

58,924

Finance leases

Other current liabilities

14,671

9,188

Total lease liabilities—current

86,195

68,112

Non-current

Operating leases

Non-current operating lease liabilities

448,169

409,930

Finance leases

Non-current finance lease liabilities

485,481

442,988

Total lease liabilities—non-current

933,650

852,918

Total lease liabilities

$

1,019,845

$

921,030

(1)Finance lease right-of-use assets include capitalized amounts related to our completed construction activities to design and build leased assets, which are reclassified from other non-current assets upon lease commencement.
(2)Finance lease right-of-use assets are recorded net of accumulated amortization of $133.0 million and $92.3 million as of January 30, 2021 and February 1, 2020, respectively.
(3)Current portion of lease liabilities represents the reduction of the related lease liability over the next 12 months.
Summary of Maturities of Lease Liabilities

The maturities of lease liabilities are as follows as of January 30, 2021 (in thousands):

OPERATING

FINANCE

FISCAL YEAR

   

LEASES

   

LEASES

   

TOTAL

2021

$

90,361

$

38,786

$

129,147

2022

79,294

39,203

118,497

2023

71,580

39,613

111,193

2024

65,332

39,984

105,316

2025

64,984

41,173

106,157

Thereafter

251,637

594,460

846,097

Total lease payments (1)(2)

623,188

793,219

1,416,407

Less—imputed interest (3)

(103,495)

(293,067)

(396,562)

Present value of lease liabilities

$

519,693

$

500,152

$

1,019,845

(1)Total lease payments include future obligations for renewal options that are reasonably certain to be exercised and are included in the measurement of the lease liability. Total lease payments exclude $793.5 million of legally binding payments under the non-cancellable term for leases signed but not yet commenced under our accounting policy as of January 30, 2021, of which $28.3 million, $38.9 million, $43.9 million, $45.6 million and $47.1 million will be paid in fiscal 2021, fiscal 2022, fiscal 2023, fiscal 2024 and fiscal 2025, respectively, and $589.7 million will be paid subsequent to fiscal 2025.
(2)Excludes future commitments under short-term lease agreements of $0.7 million as of January 30, 2021.
(3)Calculated using the discount rate for each lease at lease commencement.
Summary of Supplemental Information Related to Leases

Supplemental information related to leases consists of the following:

JANUARY 30,

FEBRUARY 1, 

2021

    

2020 

Weighted-average remaining lease term (years)

Operating leases

8.7

8.9

Finance leases

18.4

18.6

Weighted-average discount rate

Operating leases

3.97%

3.82%

Finance leases

5.04%

5.25%

Summary of Other Information Related to Leases

Other information related to leases consists of the following (in thousands):

YEAR ENDED

JANUARY 30,

FEBRUARY 1,

FEBRUARY 2, 

2021

    

2020

    

2019 

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

$

(75,794)

$

(95,329)

$

(91,965)

Operating cash flows from finance leases

(20,839)

(25,260)

(16,785)

Financing cash flows from finance leases

(12,498)

(9,682)

(6,885)

Total cash outflows from leases

$

(109,131)

$

(130,271)

$

(115,635)

Lease right-of-use assets obtained in exchange for lease obligations—net of lease terminations (non-cash)

Operating leases

$

113,828

$

34,063

$

174,977

Finance leases

57,873

42,122

33,790