Leases

6 Months Ended

Aug. 01, 2020

The Company leases all of its stores, three of its distribution centers and certain equipment under non-cancellable operating leases that expire at various dates through 2033. The Company’s stores generally have initial lease terms of 10 to 15 years and contain multiple five-year renewal options and rent escalation provisions. The lease agreements provide primarily for the payment of minimum annual rentals, costs of utilities, property taxes, maintenance, common areas and insurance.

In response to the COVID-19 pandemic, the FASB issued interpretive guidance in April 2020, which provides entities the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. The Company did not elect this option; accordingly, any rent deferrals or concessions that were granted by landlords during fiscal 2020 were treated as lease modifications and not as variable rent reductions. Since lease modification accounting generally requires recognition of changes in rent payments over the lease term, the Company’s earnings were not materially impacted in the quarter or 26 weeks ended August 1, 2020 by rent deferrals or concessions.

Supplemental cash flow information related to operating leases for the 26 weeks ended August 1, 2020 and August 3, 2019 were as follows (in millions):


	26 weeks ended
	August 1, 2020		August 3, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	265.8	$	327.9
Non-cash operating lease assets and liabilities obtained in exchange for new or modified leases	$	143.5	$	140.4