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 the 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 May 1, 2021, 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.

(a)

Includes variable costs of finance leases.

For the three-month periods ended May 1, 2021 and May 2, 2020, finance lease costs included amortization of right-of-use assets of $28,000 and $25,000 and interest on lease liabilities of $1,000 and $2,000.

Supplemental cash flow information related to leases were as follows:


	For the Three-Month Periods Ended
	May 1, 2021		May 2, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	272,000	$	338,000
Operating cash flows used for finance leases		1,000		2,000
Financing cash flows used for finance leases		28,000		25,000

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases		—		532,000
Finance leases		—		—

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


	May 1, 2021	May 2, 2020
Weighted average remaining lease term:
Operating leases	3.1 years	3.1 years
Finance leases	1.0 years	1.7 years

Weighted average discount rate:
Operating leases	6.8%	6.5%
Finance leases	5.7%	5.3%

Supplemental balance sheet information related to leases is as follows:


		May 1,		January 30,
Leases	Classification	2021		2021
Assets
Operating lease right-of-use assets	Other assets	$	860,000	$	1,116,000
Finance lease right-of-use assets	Property and equipment, net		73,000		101,000
Total lease right-of-use assets		$	933,000	$	1,217,000

Operating lease liabilities
Current portion of operating lease liabilities	Current portion of operating lease liabilities	$	262,000	$	462,000
Operating lease liabilities, excluding current portion	Other long term liabilities		601,000		646,000
Total operating lease liabilities			863,000		1,108,000

Finance lease liabilities
Current portion of finance lease liabilities	Current liabilities: Accrued liabilities		70,000		86,000
Finance lease liabilities, excluding current portion	Other long term liabilities		6,000		19,000
Total finance lease liabilities			76,000		105,000
Total lease liabilities		$	939,000	$	1,213,000

Future maturities of lease liabilities as of May 1, 2021 are as follows:


Fiscal year	Operating Leases		Finance Leases
2021	$	255,000	$	59,000
2022		313,000		19,000
2023		250,000		—
2024		141,000		—
Thereafter		—		—
Total lease payments		959,000		78,000
Less imputed interest		(96,000)		(2,000)
Total lease liabilities	$	863,000	$	76,000

In fiscal year 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 May 1, 2021, the Company had no finance leases that had not yet commenced.