Lease Accounting Lease Accounting (Tables)

3 Months Ended

May 04, 2019

As of May 4, 2019, the components of leases and lease costs are as follows (in thousands):



	Balance Sheet Location	May 4, 2019
Assets
Operating	Operating lease right-of-use assets	$	921,084
Finance	Property and equipment, net	15,197
Total lease assets		$	936,281

Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	217,110
Finance	Current portion of borrowings and finance lease obligations	1,976
Noncurrent:
Operating	Long-term operating lease liabilities	764,202
Finance	Long-term debt and finance lease obligations, net	14,591
Total lease liabilities		$	997,879



	Income Statement Location	Three Months Ended May 4, 2019
Operating lease costs¹	Cost of product sales	$	58,816
Operating lease costs¹	Selling, general and administrative expenses	5,264
Finance lease costs
Amortization of leased assets²	Cost of product sales	43
Amortization of leased assets²	Selling, general and administrative expenses	543
Interest on lease liabilities	Interest expense	287
Variable lease costs¹	Cost of product sales	24,825
Variable lease costs¹	Selling, general and administrative expenses	827
Short-term lease costs¹	Selling, general and administrative expenses	212
Total lease costs		$	90,817

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Notes:


¹	Rental expense for all property and equipment operating leases during the three months ended May 5, 2018 aggregated $72.2 million, including percentage rent of $16.4 million. During the three months ended May 5, 2018, the Company also recognized insurance, taxes, sales promotion and common area maintenance charges totaling $14.9 million related to its operating leases.


²	Amortization of leased assets related to finance leases are included in depreciation expense in the Company’s condensed consolidated statements of loss.

Maturities of the Company’s operating and finance lease liabilities as of May 4, 2019 are as follows (in thousands):



Maturity of Lease Liabilities	Operating Leases		Finance Leases		Total
2020 ¹	$	191,782	$	2,309	$	194,091
2021	196,564		2,819		199,383
2022	182,630		3,074		185,704
2023	151,931		2,752		154,683
2024	126,256		2,620		128,876
After 2024	238,400		7,625		246,025
Total lease payments	1,087,563		21,199		1,108,762
Less: Interest	106,251		4,632		110,883
Present value of lease liabilities	$	981,312	$	16,567	$	997,879

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Notes:


¹	Represents the maturity of lease liabilities for the remainder of fiscal 2020 and does not include payments made during the three months ended May 4, 2019.

Other supplemental information as of May 4, 2019 is as follows (dollars in thousands):



Lease Term and Discount Rate	May 4, 2019
Weighted-average remaining lease term (years)
Operating leases	6.0 years
Finance leases	7.3 years
Weighted-average discount rate
Operating leases	3.6	%
Finance leases	7.2	%



Supplemental Cash Flow Information	Three Months Ended May 4, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	62,082
New operating right-of-use assets obtained in exchange for lease liabilities	68,804