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Leases
 12 Months Ended
Feb. 01, 2020
Leases [Abstract]  
Leases Leases
The Company currently leases all but two of its store locations with original, non-cancelable terms that in general range from three to ten years. Store leases typically contain provisions for three to four renewal options of five years each. The exercise of lease renewal options is at the sole discretion of the Company. Most store leases also provide for minimum annual rentals and for payment of variable lease costs. In addition, some store leases also have provisions for additional rent based on a percentage of sales ("percentage rent") and others include rental payments adjusted periodically for inflation. The Company's lease agreements do not contain any material residual guarantees or material restrictive covenants. The Company does not have any financing leases.

In November 2017, the Company entered into a sale-leaseback transaction on one of its previously owned stores. The Company received net cash proceeds of $16.0 million, recognized a gain on sale of $6.3 million, and deferred the residual $7.5 million gain over the remaining ten-year lease term. As of February 3, 2019, the effective date of the adoption of ASC 842, the Company wrote-off the remaining $6.5 million deferred gain on the sale-leaseback transaction that met the sale definition under ASC 842 to beginning retained earnings.

The Company leases nine distribution centers/warehouses. All of these contain renewal provisions, except for the third-party warehouse in Fort Mill, South Carolina. The following table summarizes the location and expiration date of the Company's leased warehouses:

LocationLease Expiration Date
Leased Distribution Centers/Warehouses
Moreno Valley, California1
2023
Moreno Valley, California1
2029
Shafter, California2029
Shafter, California1
2020
Carlisle, Pennsylvania2022
Carlisle, Pennsylvania2021
Fort Mill, South Carolina2024
Fort Mill, South Carolina1
2020
Rock Hill, South Carolina2028
1 Operated by a third party.

The Company leases approximately 103,000 and 5,000 square feet of office space for its Los Angeles and Boston buying offices, respectively. The lease term for both of these facilities expire in 2022, and contain renewal provisions. In addition, the Company has a ground lease related to its New York buying office.

The following table presents net operating lease costs included in the Consolidated Statement of Earnings for fiscal 2019:

($000)2019
Operating lease cost1
$639,545  
Variable lease costs2
174,438  
Net lease cost3
$813,983  
1 Net of sublease income which was immaterial.
2 Includes property and rent taxes, insurance, common area maintenance, and percentage rent.
3 Excludes short-term lease costs which were immaterial.
The maturity of operating lease liabilities, including the ground lease related to the New York buying office as of February 1, 2020, are as follows:

($000)
Operating Leases1
2020$607,490  
2021633,846  
2022557,484  
2023469,211  
2024359,101  
Thereafter1,613,176  
Total lease payments$4,240,308  
Less: interest1,065,299  
Present value of lease liabilities$3,175,009  
Less: current operating lease liabilities564,481  
Non-current operating lease liabilities$2,610,528  
1 Operating leases exclude $266.8 million of minimum lease payments for leases signed that have not yet commenced.

At February 1, 2020, the weighted-average remaining lease term and the weighted-average discount rate for operating leases is 10.7 years and 3.5%, respectively. The weighted-average remaining lease term and the weighted-average discount rate, excluding the long-term ground lease related to the New York buying office, were 6.1 years and 3.1%, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $608.6 million for fiscal 2019 and is included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows.

Operating lease assets obtained in exchange for new operating lease liabilities (includes new leases and remeasurements or modifications of existing leases) during fiscal 2019 was $739.3 million.

In accordance with ASC 840, the aggregate undiscounted future minimum annual lease payments under leases, including the ground lease related to the New York buying office, in effect at February 2, 2019 are as follows:

($000)Total operating leases
2020$555,812  
2021580,712  
2022499,678  
2023424,695  
2024339,340  
Thereafter1,575,673  
Total minimum lease payments$3,975,910  

Rent expense under ASC 840, including contingent rent and net of sublease income, was $569.8 million and $532.4 million in fiscal 2018 and 2017, respectively. Contingent rent and sublease income was not significant in any year.