Leases

3 Months Ended

May 02, 2020

The Company temporarily closed its full-line and factory outlet stores on March 19, 2020, due to the COVID-19 pandemic, further discussed in Note 1 herein. As a result, it deferred certain rent payments for the time of closure. The Company has not received significant rent abatements as of May 2, 2020.

Discount Rate

The weighted-average discount rate as of May 2, 2020, was 4.9%. The discount rate is not readily determinable in the lease; therefore, the Company estimated the incremental borrowing rate, at the commencement date of each lease, which is the rate of interest it would have to borrow on a collateralized basis over a similar term with similar payments.

Leases Not Yet Commenced

As of May 2, 2020, the Company had retail store leases and a showroom lease which were executed, but did not have control of the underlying assets; therefore, the lease liabilities and right-of-use assets are not recorded on the Condensed Consolidated Balance Sheet. These leases contain undiscounted lease payments, which will be included in the determination of the lease liability, totaling approximately $5.9 million and have approximate terms of 5 to 10 years commencing in fiscal 2021 and fiscal 2022.

Amounts Recognized in the Condensed Consolidated Financial Statements

The following lease expense is recorded within cost of sales for the Asia sourcing office and certain equipment leases and within selling, general, and administrative expenses for all other leases, including retail store leases, in the

Company's Condensed Consolidated Statement of Operations for the thirteen weeks ended May 2, 2020 and May 4, 2019 (in thousands):


	Thirteen Weeks Ended
	May 2, 2020		May 4, 2019
Operating lease cost	$	7,234	$	7,357
Variable lease cost	818		2,237
Short-term lease cost	69		190
Total lease cost	$	8,121	$	9,784

The weighted-average remaining lease term as of May 2, 2020 was 5.8 years.

Supplemental operating cash flow information was as follows (in thousands):


	Thirteen Weeks Ended
	May 2, 2020		May 4, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,794	$	8,099
Right-of-use assets increase (decrease) as a result of modified operating lease liabilities, net	$	87	$	(2,194)