Leases (Notes)

12 Months Ended

Feb. 01, 2020

The Company leases property and equipment under noncancelable operating leases. Certain retail store lease agreements provide for contingent rental payments if the store’s net sales exceed stated levels (percentage rents) and/or contain escalation clauses, which provide for increases in base rental payments for increases in future operating costs. Many of the Company’s leases provide for one or more renewal options for periods of five years.

All of the Company's leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. As of February 1, 2020, the Company’s operating lease agreements, including assumed extensions, which are generally those that take the lease to a ten-year term, expire through fiscal 2034. As of February 1, 2020, the weighted average remaining lease term for the Company's operating leases is 8.1 years, and the weighted average discount rate is 6.6%. For the year ended February 1, 2020, cash paid for amounts included in the measurement of operating lease liabilities of $129.7 million was reflected in cash flows from operating activities in the consolidated statements of cash flows.

The following table is a summary of the Company's components for net lease costs as of February 1, 2020 (in thousands):



	February 1, 2020
Lease Cost	Fifty-Two Weeks Ended
Operating lease cost	$	144,971
Variable lease cost	40,379
Net lease cost*	$	185,350

* Excludes short-term lease cost, which is immaterial

The following table summarizes the maturity of lease liabilities under operating leases as of February 1, 2020 (in thousands):



Maturity of Lease Liabilities	Operating Leases
2020	$	165,641
2021	164,048
2022	156,101
2023	147,612
2024	136,219
After 2024	444,517
Total lease payments	$	1,214,138
Less: imputed interest	266,045
Present value of lease liabilities	$	948,093

The following disclosures for the year ended February 2, 2019 were made in accordance with the accounting guidance for operating leases in effect at that time.

The Company’s minimum rental commitments under operating lease agreements, including assumed extensions, as of February 2, 2019, are as follows (in thousands):



Fiscal Year	Retail stores		Corporate office, distribution centers and other		Total
2019	$	136,858	$	10,529	$	147,387
2020	139,892		11,885		151,777
2021	133,356		11,834		145,190
2022	123,858		11,441		135,299
2023	115,229		9,897		125,126
Thereafter	379,150		55,071		434,221
	$	1,028,343	$	110,657	$	1,139,000

Rent expense, including base and contingent rent under operating leases, was $119.0 million and $98.2 million in fiscal 2018 and fiscal 2017, respectively. Contingent rents were $0.6 million and $0.6 million in fiscal 2018 and fiscal 2017, respectively.

During fiscal 2019, the Company opened new stores and modified leases for existing stores which resulted in an increase in our right of use assets and lease liabilities of approximately $273.1 million and $278.9 million, respectively. In addition, as of February 1, 2020, the Company has entered into commitments for new stores for which the leases have not yet commenced that have future minimum lease payments of approximately $289.4 million.

During the thirteen weeks ended February 1, 2020, the Company committed to 77 new store leases with average terms of approximately ten years that have future minimum lease payments of approximately $141.2 million.

From February 2, 2020 to March 19, 2020, the Company committed to 19 new store leases with terms of ten years that have future minimum lease payments of approximately $34.4 million.