Cloud Computing Arrangements that are Service Contracts

12 Months Ended

Jan. 29, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Cloud Computing Arrangements that are Service Contracts

Note 7 – Cloud Computing Arrangements that are Service Contracts

Since fiscal 2019, we have engaged third-party providers to host software for us, including our customer relationship management (“CRM”) platform, merchandise financial planning platform and our transportation, warehouse and order management systems. These platforms are cloud computing arrangements that are software-as-a-service (“SaaS”) contracts. Net capitalized costs related to cloud computing arrangements as of January 29, 2022 and January 30, 2021 were $15.6 million and $14.2 million, respectively. Total expense included in selling, general, and administrative expenses related to these arrangements was $4.0 million during fiscal year 2021, $1.3 million during fiscal year 2020 and $122,000 during fiscal year 2019. As of January 29, 2022, approximately $2.8 million of net capitalized costs related to cloud computing arrangements were classified in other current assets and $12.8 million were classified as other noncurrent assets in our consolidated balance sheets. As of January 30, 2021, approximately $3.0 million of net capitalized costs related to cloud computing arrangements were classified in other current assets and $11.2 million were classified as other noncurrent assets in our consolidated balance sheets.