The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically have initial terms of 5 years to 10 years, with options that usually permit renewal for additional five-year periods. The initial term of the lease for the corporate headquarter was for 20 years, with the opportunity to extend for six additional successive periods of five years, beginning in fiscal 2026. The Company also leases certain equipment and other assets under operating leases, typically with initial terms of 3 to 5 years. The Company is generally obligated for the cost of property taxes, insurance and common area maintenance fees relating to its leases, which are considered variable lease costs and are expensed as incurred.

ASC 842 requires the assessment of any lease modification to determine if the modification should be treated as a separate lease and if not, modification accounting would be applied. Lease modification accounting requires the recalculation of the ROU asset, lease liability and lease expense over the respective lease term. In April 2020, the FASB issued guidance allowing entities to make a policy election to account for lease concessions related to the COVID-19 pandemic as though enforceable rights and obligations for those concessions existed. The election applies to any lessor-provided lease concession related to the impact of the COVID-19 pandemic, provided the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has opted not to elect this practical expedient and instead account for these rent concessions as lease modifications in accordance with ASC 842. As of May 1, 2021, the Company’s operating leases liabilities represent the present value of the remaining future minimum lease payments updated based on concessions and lease modifications.

The following table is a summary of the Company’s components of net lease cost for the first quarter ended May 1, 2021 and May 2, 2020:

	For the three months ended
	May 1, 2021		May 2, 2020
(in thousands)
Operating lease cost	$	11,126	$	12,640
Variable lease costs⁽¹⁾		3,774		3,800
Total lease costs	$	14,900	$	16,440

Supplemental cash flow and balance sheet information related to leases for the three months ended May 1, 2021 and May 2, 2020 is as follows:


(dollars in thousands)	For the three months ended
Cash paid for amounts included in the measurement of lease liabilities:	May 1, 2021		May 2, 2020
Operating cash flows for operating leases⁽¹⁾	$	17,112	$	9,805
Non-cash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities	$	2,137	$	559

Weighted average remaining lease term	4.4 yrs.		5.2 yrs.
Weighted average discount rate	6.72%		7.08%

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 1, 2021:

(in thousands)
2021 (remaining)	$	35,609
2022		48,389
2023		40,987
2024		31,691
2025		23,102
Thereafter		15,787
Total minimum lease payments	$	195,565
Less: amount of lease payments representing interest		27,378
Present value of future minimum lease payments	$	168,187
Less: current obligations under leases		38,331
Long-term lease obligations	$	129,856