Leases

12 Months Ended

Feb. 03, 2018

Leases [Abstract]

Leases

Note 7 – Leases

We lease all of our retail locations and certain equipment under operating leases expiring at various dates through fiscal 2031. Various lease agreements require scheduled rent increases over the initial lease term. Rent expense for such leases is recognized on a straight-line basis over the initial lease term beginning the earlier of the start date of the lease or when we take possession of the property. The difference between rent based upon scheduled monthly payments and rent expense recognized on a straight-line basis is recorded as accrued rent. All incentives received from landlords are recorded as deferred income and amortized over the life of the lease on a straight-line basis as a reduction of rental expense.

Certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. Certain leases also contain escalation clauses for increases in operating costs and taxes.

Notes to Consolidated Financial Statements – continued

There were no assignments of operating leases to third parties in fiscal 2017 or fiscal 2016. We assigned four store operating leases to separate third parties during fiscal 2015. Based on the terms of the assignments, we are not liable to the landlords for any future obligations that should arise in connection with these locations.

Rental expense for our operating leases consisted of:

(In thousands)	2017		2016		2015
Rentals for real property	$	66,835	$	65,900	$	64,244
Contingent rent		70		92		83
Equipment rentals		41		62		59
Total	$	66,946	$	66,054	$	64,386

Future minimum lease payments at February 3, 2018 were as follows:

(In thousands)	Operating Leases
2018	$	63,010
2019		58,295
2020		48,768
2021		46,810
2022		37,546
Thereafter to 2031		68,594
Total	$	323,023