LEASES (Tables)

12 Months Ended

Jan. 30, 2022

Jan. 31, 2021

The components of the net lease cost were as follows:



(In millions)	Line Item in the Company’s Consolidated Statements of Operations	2021		2020		2019
Finance lease cost:
Amortization of right-of-use-assets	SG&A expenses (depreciation and amortization)	$	4.9	$	5.2	$	5.3
Interest on lease liabilities	Interest expense	0.3		0.4		0.5
Total finance lease cost		5.2		5.6		5.8
Operating lease cost	SG&A expenses	451.8		477.8		459.5
Short-term lease cost	SG&A expenses	32.1		28.9		25.9
Variable lease cost	SG&A expenses	100.5		71.7		143.8
Less: sublease income	SG&A expenses	(1.5)		(1.3)		(0.4)
Total net lease cost		$	588.1	$	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 $26.9 million and $50.3 million of rent abatements during 2021 and 2020, respectively. 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 Sheets.

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	2021		2020
Right-of-use assets:
Operating lease	Operating lease right-of-use assets	$	1,349.0	$	1,564.8
Finance lease	Property, plant and equipment, net	8.1		11.4
		$	1,357.1	$	1,576.2
Current lease liabilities:
Operating lease	Current portion of operating lease liabilities	$	375.4	$	421.4
Finance lease	Accrued expenses	4.0		5.3
		$	379.4	$	426.7
Other lease liabilities:
Operating lease	Long-term portion of operating lease liabilities	$	1,214.4	$	1,430.7
Finance lease	Other liabilities	5.2		7.9
		$	1,219.6	$	1,438.6

Operating lease right-of-use assets with a carrying amount of $35.5 million were written down to a fair value of $14.3 million during 2021 primarily as a result of actions taken by the Company to reduce its real estate footprint, including reductions in office space, and the financial performance in certain of the Company’s retail stores. The $21.2 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.

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)	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	484.0	$	396.1	$	472.8
Operating cash flows from finance leases	0.3		0.4		0.5
Financing cash flows from finance leases	5.2		5.5		5.5
Noncash transactions:
Right-of-use assets obtained in exchange for new operating lease liabilities	267.3		247.3		441.3
Right-of-use assets obtained in exchange for new finance lease liabilities	2.6		4.0		3.6

In conjunction with the Australia acquisition in May 2019, the Company acquired an office building and warehouse owned by Gazal. Prior to the acquisition, Gazal had entered into an agreement with a third party to sell the building and as such, the building was classified as held for sale and recorded at its fair value less estimated costs to sell on the acquisition date. Please see Note 3, “Acquisitions and Divestitures,” for further discussion of the Australia acquisition. In June 2019, the Company completed the sale of the office building and warehouse for $59.4 million, incurring costs of $1.0 million, and leased back the building without an option to repurchase. No gain or loss was recognized on the transaction. The lease is classified as an operating lease with an initial lease term of five years and includes three options to renew for a period of five years each. Exercise of these renewal options is not reasonably certain and as a result, the Company recognized an operating lease right-of-use asset and operating lease liability based on the initial term of the lease.

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

At January 30, 2022, the maturities of the Company’s lease liabilities were as follows:


(In millions)	Finance Leases		Operating Leases		Total
2022	$	4.1	$	423.7	$	427.8
2023	2.9		338.2		341.1
2024	1.8		247.7		249.5
2025	0.6		193.0		193.6
2026	—		157.2		157.2
Thereafter	—		444.4		444.4
Total lease payments	$	9.4	$	1,804.2	$	1,813.6
Less: Interest	(0.2)		(214.4)		(214.6)
Total lease liabilities	$	9.2	$	1,589.8	$	1,599.0

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:



	2021		2020
Weighted average remaining lease term (years):
Operating leases	6.25		6.53
Finance leases	2.51		3.98
Weighted average discount rate:
Operating leases	3.81	%	4.10	%
Finance leases	1.48	%	2.77	%