Leases

9 Months Ended

Oct. 31, 2020

LEASES

We lease our stores, fulfillment center and other facilities under operating lease arrangements with unrelated parties and related parties owned by the Schottenstein Affiliates. The majority of our real estate leases provide for renewal options, which are typically not included in the lease term used for measuring the lease assets and lease liabilities as it is not reasonably certain we will exercise renewal options. We pay variable amounts for certain lease and non-lease components as well as for contingent rent based on sales for certain leases where the sales are in excess of specified levels and for leases that have certain contingent triggering events that are in effect. We also lease equipment under operating leases.

We receive operating sublease income from unrelated third parties for leasing portions or all of certain properties. Operating sublease income and operating expenses for these properties are included in operating expenses in our condensed consolidated statements of operations.

Lease income and lease expense consisted of the following for the three and nine months ended October 31, 2020 and November 2, 2019:


	Three months ended				Nine months ended
(in thousands)	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Operating sublease income	$	2,930	$	2,462	$	9,127	$	6,910
Operating lease expense:
Lease expense to unrelated parties	$	47,775	$	53,674	$	152,165	$	159,735
Lease expense to related parties	2,266		2,387		6,923		7,100
Variable lease expense to unrelated parties	15,653		13,539		47,306		39,542
Variable lease expense to related parties	348		325		1,017		975
Total operating lease expense	$	66,042	$	69,925	$	207,411	$	207,352

As of October 31, 2020, our future fixed minimum lease payments are as follows:


(in thousands)	Unrelated Parties		Related Parties		Total
Remainder of fiscal 2020	$	49,514	$	1,461	$	50,975
Fiscal 2021	262,149		8,697		270,846
Fiscal 2022	197,309		7,418		204,727
Fiscal 2023	156,161		4,573		160,734
Fiscal 2024	115,492		4,139		119,631
Future fiscal years thereafter	238,602		11,353		249,955
	1,019,227		37,641		1,056,868
Less discounting impact on operating leases	(104,590)		(4,084)		(108,674)
Total operating lease liabilities	914,637		33,557		948,194
Less current operating lease liabilities	(218,704)		(7,719)		(226,423)
Non-current operating lease liabilities	$	695,933	$	25,838	$	721,771