Leases

6 Months Ended

Jul. 31, 2021

The Company deferred substantially all of its rent payments due in the months of April 2020 and May 2020. As of July 31, 2021, the Company had approximately $42 million of deferred rent payments remaining. This deferred rent is expected to be substantially repaid by the end of Fiscal 2022. The Company has not recorded any provision for interest or penalties which may arise as a result of these deferrals, as management does not believe payment for any such interest or penalties to be probable. In April 2020, the FASB granted guidance (hereinafter, the practical expedient) permitting an entity to choose to forgo the evaluation of the enforceable rights and obligations of the original lease contract, specifically in situations where rent concessions have been agreed to with landlords as a result of COVID-19. Instead, the entity may account for COVID-19 related rent concessions, whatever their form (e.g. rent deferral, abatement or other) either: a) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or b) as lease modifications. In accordance with this practical expedient, the Company elected not to account for any concessions granted by landlords as a result of COVID-19 as lease modifications. Rent abatements under the practical expedient would be recorded as a negative variable lease cost. The Company negotiated with substantially all of its landlords and has received certain concessions in the form of rent deferrals and other lease or rent modifications. In addition, the Company recorded lease expense during the deferral periods in accordance with its existing policies.

Total lease costs consist of the following:


	13 weeks ended				26 weeks ended
(in millions)	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020
Operating lease cost	$	109.4	$	105.5	$	215.0	$	216.9
Short-term lease cost	5.6		5.8		6.4		10.7
Variable lease cost	30.9		26.3		61.5		51.9
Sublease income	(0.5)		(0.3)		(1.2)		(0.8)
Total lease cost	$	145.4	$	137.3	$	281.7	$	278.7