Leases

The Company leases certain property and equipment, such as transmission and production equipment, satellite transponder and office equipment. The Company also leases office space used by its Emerging segment's Float Left and retail space used by its Emerging segment retailer, J.W. Hulme. The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on accompanying condensed consolidated balance sheets.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Some of the Company's leases include options to extend the term, which is only included in the lease liability and right-of-use assets calculation when it is reasonably certain the Company will exercise that option. As of October 31, 2020, the lease liability and right-of-use assets did not include any lease extension options.

The Company has lease agreements with lease and non-lease components, and has elected to account for these as a single lease component. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The components of lease expense were as follows:



	For the Three-Month Periods Ended				For the Nine-Month Periods Ended
	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Operating lease cost	$	241,000	$	240,000	$	731,000	$	763,000
Short-term lease cost	15,000		16,000		60,000		126,000
Variable lease cost (a)	19,000		21,000		72,000		71,000

(a) Includes variable costs of finance leases.

For the three-month periods ended October 31, 2020 and November 2, 2019, finance lease costs included amortization of right-of-use assets of $26,000 and $24,000 and interest on lease liabilities of $2,000 and $2,000. For the nine-month periods ended October 31, 2020 and November 2, 2019, finance lease costs included amortization of right-of-use assets of $76,000 and $48,000 and interest on lease liabilities of $5,000 and $5,000.

Supplemental cash flow information related to leases were as follows:



	For the Nine-Month Periods Ended
	October 31, 2020		November 2, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	824,000	$	769,000
Operating cash flows used for finance leases	5,000		5,000
Financing cash flows used for finance leases	75,000		46,000
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	1,299,000		180,000
Finance leases	62,000		188,000

The weighted average remaining lease term and weighted average discount rates related to leases were as follows:



	October 31, 2020	February 1, 2020
Weighted average remaining lease term:
Operating leases	2.6 years	1.4 years
Finance leases	1.3 years	1.9 years
Weighted average discount rate:
Operating leases	6.8%	5.6%
Finance leases	5.7%	5.3%

Supplemental balance sheet information related to leases is as follows:



Leases	Classification	October 31, 2020		February 1, 2020
Assets
Operating lease right-of-use assets	Other assets	$	1,367,000	$	832,000
Finance lease right-of-use assets	Property and equipment, net	129,000		143,000
Total lease right-of-use assets		$	1,496,000	$	975,000
Operating lease liabilities
Current portion of operating lease liabilities	Current portion of operating lease liabilities	$	643,000	$	704,000
Operating lease liabilities, excluding current portion	Other long term liabilities	716,000		129,000
Total operating lease liabilities		1,359,000		833,000
Finance lease liabilities
Current portion of finance lease liabilities	Current liabilities: Accrued liabilities	98,000		80,000
Finance lease liabilities, excluding current portion	Other long term liabilities	35,000		66,000
Total finance lease liabilities		133,000		146,000
Total lease liabilities		$	1,492,000	$	979,000

Future maturities of lease liabilities as of October 31, 2020 are as follows:



Fiscal year	Operating Leases			Finance Leases
2020	$	272,000		$	30,000
2021	518,000			90,000
2022	313,000			18,000
2023	250,000			—
2024	141,000			—
Thereafter	—			—
Total lease payments	1,494,000			138,000
Less imputed interest	(135,000		)	(5,000		)
Total lease liabilities	$	1,359,000		$	133,000

As of October 31, 2020, the Company had executed a $2.7 million operating lease that had not yet commenced. This operating lease will replace the Company's current satellite transponder agreement, will commence during the first quarter of fiscal 2021 and have a lease term through October 31, 2025. As of October 31, 2020, the Company had no finance leases that had not yet commenced.