(10) Leases

The Company leases its retail store locations and certain office space and equipment. The Company analyzes all leases at inception to determine if a right-of-use asset and lease liability should be recognized. Leases with an initial term of 12 months or less and leases with mutual termination clauses are not included on the consolidated balance sheet. The lease liability is measured at the present value of future lease payments as of the lease commencement date, or as of the date of adoption of ASU 2016-02 for leases existing at the adoption date. Leases for store locations are typically for a term of five years with options to extend for one or more five-year periods.

Total lease cost is comprised of operating lease costs, short-term lease costs and variable lease costs, which include rent paid as a percentage of sales, common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Lease expense for the fiscal year ended February 1, 2020 is as follows (in thousands):



	2019
Operating lease cost	$	51,213
Variable lease cost		5,791
Short term lease cost		1,061
Total lease cost	$	58,065

Future minimum lease payments as of February 1, 2020 are as follows (in thousands):


Fiscal Year	Lease Costs
2020	$	48,182
2021		43,766
2022		32,822
2023		25,276
2024		17,541
Thereafter		27,502
Total future minimum lease payments		195,089
Less: imputed interest		(16,829)	(1)
Total present value of lease liabilities	$	178,260	(2)

(1)

Calculated using the discount rate for each lease.

(2)

Includes short-term and long-term operating leases.

Adoption of the lease accounting standard (Topic 842) using the effective transition method requires the Company to provide relevant disclosures in accordance with ASC Topic 840, Leases for all prior periods presented. Future minimum lease payments as of February 2, 2019 were as follows (in thousands):


Fiscal Year	Lease Costs
2019	$	47,289
2020		39,294
2021		28,228
2022		16,880
2023		9,440
Thereafter		7,836
Total future minimum lease payments	$	148,967

Certain operating leases provide for fixed monthly rents, while others provide for contingent rents computed as a percentage of net sales and others provide for a combination of both fixed monthly rents and contingent rents computed as a percentage of net sales.

Supplemental cash flow and other information related to operating leases for the fiscal year ended February 1, 2020 is as follows (in thousands, except for weighted average amounts):



	2019
Cash paid for operating leases	$	49,704
Right of use assets obtained in exchange for new operating lease liabilities	$	82,954

Weighted average remaining lease term (years) - operating leases		5.13
Weighted average discount rate - operating leases		3.49%