XML 62 R46.htm IDEA: XBRL DOCUMENT

LEASES (Tables)

12 Months Ended

Jan. 31, 2021

Feb. 02, 2020

The components of the net lease cost were as follows:



(In millions)	Line Item in the Company’s Consolidated Statements of Operations	2020		2019
Finance lease cost:
Amortization of right-of-use-assets	SG&A expenses (depreciation and amortization)	$	5.2	$	5.3
Interest on lease liabilities	Interest expense	0.4		0.5
Total finance lease cost		5.6		5.8
Operating lease cost	SG&A expenses	477.8		459.5
Short-term lease cost	SG&A expenses	28.9		25.9
Variable lease cost	SG&A expenses	71.7		143.8
Less: sublease income	SG&A expenses	(1.3)		(0.4)
Total net lease cost		$	582.7	$	634.6

The Company has sought concessions from landlords for certain of its stores affected by temporary closures as a result of the COVID-19 pandemic in the form of rent deferrals or rent abatements. Consistent with updated guidance issued by the FASB in April 2020, the Company elected to treat COVID-19 related rent concessions as though enforceable rights and obligations for those concessions existed in the original contract. As such, rent abatements negotiated with landlords are recorded as a reduction to variable lease expense included in SG&A expenses in the Company’s Consolidated Statements of Operations. The Company recorded $50.3 million of rent abatements during 2020. Rent deferrals have no impact to lease expense and amounts

deferred and payable in future periods are included in the current portion of operating lease liabilities in the Company’s Consolidated Balance Sheet.

Schedule of Supplemental Balance Sheet Information [Table Text Block]

Supplemental balance sheet information related to leases was as follows:


(In millions)	Line Item in the Company’s Consolidated Balance Sheets	2020		2019
Right-of-use assets:
Operating lease	Operating lease right-of-use assets	$	1,564.8	$	1,675.8
Finance lease	Property, plant and equipment, net	11.4		12.6
		$	1,576.2	$	1,688.4
Current lease liabilities:
Operating lease	Current portion of operating lease liabilities	$	421.4	$	363.5
Finance lease	Accrued expenses	5.3		4.6
		$	426.7	$	368.1
Other lease liabilities:
Operating lease	Long-term portion of operating lease liabilities	$	1,430.7	$	1,532.0
Finance lease	Other liabilities	7.9		9.9
		$	1,438.6	$	1,541.9

Operating lease right-of-use assets with a carrying amount of $138.7 million were written down to a fair value of $110.5 million during 2020 primarily as a result of the adverse impacts of the COVID-19 pandemic on the financial performance of certain of the Company's retail stores and the shift in consumer buying trends from brick and mortar retail stores to digital channels. The $28.2 million of impairment charges were included in SG&A expenses in the Company’s Consolidated Statement of Operations. Please see Note 11, “Fair Value Measurements,” for further discussion of the noncash impairment charges related to the Company’s operating lease right-of-use assets.

Schedule of Supplemental Cash Flow Information [Table Text Block]

Supplemental cash flow information related to leases was as follows:



(In millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	396.1	$	472.8
Operating cash flows from finance leases	0.4		0.5
Financing cash flows from finance leases	5.5		5.5
Non-cash transactions:
Right-of-use assets obtained in exchange for new operating lease liabilities	247.3		441.3
Right-of-use assets obtained in exchange for new finance lease liabilities	4.0		3.6

Lessee, Operating and Finance Lease, Liability, Maturity [Table Text Block]

At January 31, 2021, the maturities of the Company’s lease liabilities were as follows:


(In millions)	Finance Leases		Operating Leases		Total
2021	$	5.6	$	487.0	$	492.6
2022	3.5		386.2		389.7
2023	2.0		293.1		295.1
2024	0.9		228.7		229.6
2025	0.4		180.0		180.4
Thereafter	1.9		554.7		556.6
Total lease payments	$	14.3	$	2,129.7	$	2,144.0
Less: Interest	(1.1)		(277.6)		(278.7)
Total lease liabilities	$	13.2	$	1,852.1	$	1,865.3

Operating and Capital Leases, Rent Expense [Table Text Block]

Rent expense was as follows:


(In millions)	2018
Minimum	$	465.3
Percentage and other	128.6
Less: Sublease rental income	(1.4)
Total	$	592.5

Schedule of Weight Average Remaining Lease Term and Weighted Average Discount Rate [Table Text Block]

The following summarizes the weighted average remaining lease terms and weighted average discount rates related to the Company’s right-of-use assets and lease liabilities recorded on the balance sheet:



	2020		2019
Weighted average remaining lease term (years):
Operating leases	6.53		6.84
Finance leases	3.98		4.37
Weighted average discount rate:
Operating leases	4.10	%	4.25	%
Finance leases	2.77	%	3.11	%