XML 31 R17.htm IDEA: XBRL DOCUMENT v3.23.1
Leases
12 Months Ended
Jan. 28, 2023
Leases [Abstract]  
Leases

Note 10 – Leases

We lease all of our physical stores, our single distribution center, which has a current lease term expiring in 2034, and office space for our Southern office. We also enter into leases of equipment, copiers and billboards. We do not have any leases with related parties. In addition, we do not have any sublease arrangements with any related party or third party. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Our real estate leases typically include options to extend the lease or to terminate the lease at our sole discretion. Options to extend real estate leases typically include one or more options to renew, with renewal terms that typically

extend the lease term for five years or more. Many of our leases also contain “co-tenancy” provisions, including the required presence and continued operation of certain anchor tenants in the adjoining retail space. If a co-tenancy violation occurs, we have the right to a reduction of rent for a defined period after which we have the option to terminate the lease if the violation is not cured. In addition to co-tenancy provisions, certain leases contain “go-dark” provisions that allow us to cease operations while continuing to pay rent through the end of the lease term. When determining the lease term, we include options that are reasonably certain to be exercised.

Our leases typically provide for fixed minimum rental payments, and certain leases provide for contingent rental payments based upon various specified percentages of sales above minimum levels. In addition to rental payments, we are required to pay certain non-lease components, such as real estate taxes, insurance and CAM, on most of our real estate leases. Such non-lease components are typically variable in nature. Certain real estate leases also contain escalation clauses for increases in minimum rentals, operating costs and taxes.

 

Lease-related costs reported in our Consolidated Statements of Income were as follows:

 

(In thousands)

 

2022

 

 

2021

 

 

2020

 

Operating lease cost

 

$

60,777

 

 

$

54,417

 

 

$

53,418

 

Variable lease cost

 

 

 

 

 

 

 

 

 

  CAM, property taxes and insurance

 

 

19,001

 

 

 

18,914

 

 

 

19,805

 

  Percentage rent and other variable lease costs

 

 

1,231

 

 

 

2,723

 

 

 

2,008

 

Total

 

$

81,009

 

 

$

76,054

 

 

$

75,231

 

 

During Fiscal 2020, we deferred lease payments of approximately $3.1 million during April, May and June pursuant to arrangements reached with various landlords. These deferrals were substantially repaid over the remainder of Fiscal 2020. We accounted for these arrangements as if they were part of the enforceable rights and obligations of the existing contracts, not as lease modifications. Rent continued to be recognized on a straight line basis for contracts with these deferrals.

 

Other information related to leases, including supplemental cash flow information, consists of:

 

(In thousands)

 

2022

 

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of
   operating lease liabilities

 

$

48,991

 

 

$

46,562

 

 

$

38,477

 

ROU assets obtained in exchange for operating lease liabilities1

 

$

146,996

 

 

$

64,058

 

 

$

36,290

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

As of

 

 

As of

 

 

 

January 28, 2023

 

 

January 29, 2022

 

 

January 30, 2021

 

Weighted-average remaining lease term for operating leases
   (in years)

 

7.3

 

 

 

6.0

 

 

6.1

 

Weighted-average discount rate for operating leases

 

 

4.2

%

 

 

5.2

%

 

 

5.2

%

 

1) Includes ROU assets added as part of the Shoe Station acquisition described in Note 3 - "Acquisition of Shoe Station"

 

The following table reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to our operating lease liabilities as of January 28, 2023:

 

(In thousands)

 

Operating Leases

 

2023

 

$

71,596

 

2024

 

 

61,821

 

2025

 

 

50,619

 

2026

 

 

49,713

 

2027

 

 

42,946

 

Thereafter to 2034

 

 

119,396

 

   Total undiscounted lease payments

 

 

396,091

 

Less: Imputed interest

 

 

52,863

 

   Total operating lease liabilities

 

 

343,228

 

Less: Current portion of operating lease liabilities

 

 

58,154

 

   Long-term portion of operating lease liabilities

 

$

285,074