Leases (Tables)

3 Months Ended

May 02, 2020

The following table is a summary of the Company’s components of net lease cost for the three months ended May 2, 2020 and May 4, 2019:

	For the three months ended
	May 2, 2020		May 4, 2019
(in thousands)
Operating lease cost	$	12,640	$	13,253
Short-term lease costs ⁽¹⁾		—		—
Variable lease costs⁽²⁾		3,800		4,045
Total lease costs	$	16,440	$	17,298

(1)

The Company had no short-term lease costs.

(2)

Variable lease costs include the cost of property taxes, insurance and common area maintenance fees related to its leases.

Schedule of Cash Flow and Balance Sheet Information Related to Leases

Supplemental cash flow and balance sheet information related to leases for the first three months ended May 2, 2020 and May 4, 2019 is as follows:


(dollars in thousands)	For the three months ended
Cash paid for amounts included in the measurement of lease liabilities:	May 2, 2020		May 4, 2019
Operating cash flows for operating leases ⁽¹⁾	$	9,805	$	14,611
Non-cash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities	$	559	$	1,851

Weighted average remaining lease term	5.2 yrs.		5.8 yrs.
Weighted average discount rate	7.08%		7.08%

(1)

Due to the store closures, the Company did not make scheduled rent payments, due April 1, 2020, of $4.2 million, this amount is included in the Accounts Payable balance at May 2, 2020. We are engaging with landlords to discuss rent concessions. No rent concessions were agreed upon until the second quarter of fiscal 2020.

Schedule of Reconciliation of Undiscounted Cash Flows Related to Operating Lease Liabilities

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of May 2, 2020:

(in thousands)
2020 (remaining)	$	41,479
2021		54,468
2022		49,225
2023		41,156
2024		30,855
Thereafter		38,245
Total minimum lease payments	$	255,428
Less: amount of lease payments representing interest		41,873
Present value of future minimum lease payments	$	213,555
Less: current obligations under leases		41,780
Long-term lease obligations	$	171,775