Leases

12 Months Ended

Feb. 03, 2024

Leases [Abstract]

Leases

Leases

The Company leases office space under operating lease agreements that are non-cancelable (subject to limited termination rights). These leases have remaining lease terms ranging from one year to approximately seven years. The Company is required to pay property taxes, insurance, and normal maintenance costs for certain of these facilities and will be required to pay any increases over the base year of these expenses on the remainder of the Company’s facilities.

The components of operating lease expense were as follows (in thousands):

	Fiscal Year Ended
	February 3, 2024		January 28, 2023		January 29, 2022
Operating lease cost	$	23,768	$	25,326	$	24,146
Short-term lease cost	1,411		710		253
Sublease income	(1,128)		(786)		(188)
Total lease cost	$	24,051	$	25,250	$	24,211

Supplemental information related to operating leases was as follows (in thousands, except for weighted-average data):

	Fiscal Year Ended
	February 3, 2024		January 28, 2023		January 29, 2022
Cash paid for amounts in the measurement of operating lease liabilities—operating cash flows	$	27,048	$	25,777	$	24,970
Operating lease ROU assets obtained in exchange for new operating lease liabilities	$	982	$	—	$	20,816

	As of
	February 3, 2024		January 28, 2023
Weighted-average remaining lease term—operating leases (in years)	5.9		6.5
Weighted-average discount rate—operating leases	4.73	%	4.53	%

Future minimum lease payments included in the measurement of operating lease liabilities as of February 3, 2024 were as follows (in thousands):

Fiscal Years Ending	Amount
2025	$	27,391
2026	20,570
2027	14,466
2028	12,597
2029	12,984
2030 and thereafter	30,671
Total future minimum lease payments (1)	118,679
Less: imputed interest	(16,733)
Total operating lease liabilities	$	101,946

__________

(1)The contractual commitment amounts under operating leases in the table above are primarily related to facility leases for the Company’s corporate office facilities in San Francisco, California, as well as other offices for the Company’s local operations. The table above does not reflect obligations under contracts that the Company can cancel without a significant penalty, the Company’s option to exercise early termination rights, or the payment of related early termination fees.

The Company impaired and ceased using leased office spaces for which the Company recorded $1.1 million of expense in “Lease modification, impairment, and related charges” for the fiscal year ended January 28, 2023.

On April 12, 2023, the Company settled a lease dispute, which was primarily related to lease incentives associated with leasehold improvements in the form of a tenant allowance and received $11.3 million. This amount was recognized primarily as a reduction to the corresponding ROU assets on the Company’s consolidated balance sheet and was also included in “Operating lease liabilities, net” on the Company’s consolidated statement of cash flows. This claim is unrelated to the claim discussed under the caption “Lease-Related Litigation” in Note 9, “Commitments and Contingencies.”

In August 2023, the Company executed a sublease for certain office space, which resulted in an impairment of the corresponding ROU and fixed assets of $4.8 million. This impairment charge was recorded in “Lease modification, impairment, and related charges” for the fiscal year ended February 3, 2024.

In addition to its operating leases, the Company has entered into non-cancelable finance leases for equipment beginning in 2020. The balances for finance leases were recorded in “Other assets, non-current,” “Accrued expenses and other current liabilities,” and “Other liabilities, non-current” as the amounts were immaterial as of February 3, 2024 and January 28, 2023.

Leases

Leases

The Company leases office space under operating lease agreements that are non-cancelable (subject to limited termination rights). These leases have remaining lease terms ranging from one year to approximately seven years. The Company is required to pay property taxes, insurance, and normal maintenance costs for certain of these facilities and will be required to pay any increases over the base year of these expenses on the remainder of the Company’s facilities.

The components of operating lease expense were as follows (in thousands):

	Fiscal Year Ended
	February 3, 2024		January 28, 2023		January 29, 2022
Operating lease cost	$	23,768	$	25,326	$	24,146
Short-term lease cost	1,411		710		253
Sublease income	(1,128)		(786)		(188)
Total lease cost	$	24,051	$	25,250	$	24,211

Supplemental information related to operating leases was as follows (in thousands, except for weighted-average data):

	Fiscal Year Ended
	February 3, 2024		January 28, 2023		January 29, 2022
Cash paid for amounts in the measurement of operating lease liabilities—operating cash flows	$	27,048	$	25,777	$	24,970
Operating lease ROU assets obtained in exchange for new operating lease liabilities	$	982	$	—	$	20,816

	As of
	February 3, 2024		January 28, 2023
Weighted-average remaining lease term—operating leases (in years)	5.9		6.5
Weighted-average discount rate—operating leases	4.73	%	4.53	%

Future minimum lease payments included in the measurement of operating lease liabilities as of February 3, 2024 were as follows (in thousands):

Fiscal Years Ending	Amount
2025	$	27,391
2026	20,570
2027	14,466
2028	12,597
2029	12,984
2030 and thereafter	30,671
Total future minimum lease payments (1)	118,679
Less: imputed interest	(16,733)
Total operating lease liabilities	$	101,946

__________

(1)The contractual commitment amounts under operating leases in the table above are primarily related to facility leases for the Company’s corporate office facilities in San Francisco, California, as well as other offices for the Company’s local operations. The table above does not reflect obligations under contracts that the Company can cancel without a significant penalty, the Company’s option to exercise early termination rights, or the payment of related early termination fees.

The Company impaired and ceased using leased office spaces for which the Company recorded $1.1 million of expense in “Lease modification, impairment, and related charges” for the fiscal year ended January 28, 2023.

On April 12, 2023, the Company settled a lease dispute, which was primarily related to lease incentives associated with leasehold improvements in the form of a tenant allowance and received $11.3 million. This amount was recognized primarily as a reduction to the corresponding ROU assets on the Company’s consolidated balance sheet and was also included in “Operating lease liabilities, net” on the Company’s consolidated statement of cash flows. This claim is unrelated to the claim discussed under the caption “Lease-Related Litigation” in Note 9, “Commitments and Contingencies.”

In August 2023, the Company executed a sublease for certain office space, which resulted in an impairment of the corresponding ROU and fixed assets of $4.8 million. This impairment charge was recorded in “Lease modification, impairment, and related charges” for the fiscal year ended February 3, 2024.

In addition to its operating leases, the Company has entered into non-cancelable finance leases for equipment beginning in 2020. The balances for finance leases were recorded in “Other assets, non-current,” “Accrued expenses and other current liabilities,” and “Other liabilities, non-current” as the amounts were immaterial as of February 3, 2024 and January 28, 2023.