Leases

We conduct all of our retail sales and corporate operations in leased facilities. Lease terms generally range up to ten years in duration (subject to extensions) and provide for escalations in base rents periodically. Many of our store leases contain one or more options to renew the lease at our sole discretion. Generally, we do not consider any additional renewal periods to be reasonably certain of being exercised.

Most store leases include tenant allowances from landlords, rent escalation clauses and/or contingent rent provisions. Certain leases provide for additional rent based on a percentage of sales and annual rent increases generally based upon the Consumer Price Index. In addition, many of the store leases contain certain co-tenancy provisions that permit us to pay rent based on a pre-determined percentage of sales when the occupancy of the retail center falls below minimums established in the lease. For non-cancelable operating lease agreements, operating lease assets and operating lease liabilities are established for leases with an expected term greater than one year and we recognize lease expense on a straight-line basis. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when the achievement of the specified sales that triggers the contingent rent is probable.

Refer to Note 2 "Accounting Standard Adopted in Fiscal 2019" for further information.

Operating leases

We lease office and warehouse space (10 and 12 Whatney, Irvine, California) from a company that is owned by the co-founders of Tillys. The lease expires on December 31, 2027. We incurred rent expense of $2.1 million, $2.1 million and $1.1 million in fiscal years 2019, 2018 and 2017, respectively.

We lease office and warehouse space (11 Whatney, Irvine, California) from a company that is owned by one of the co-founders of Tillys. We incurred rent expense of $0.4 million in each of the fiscal years 2019, 2018 and 2017, related to this lease. Pursuant to the lease agreement, the lease payment adjusts annually based upon the Los Angeles/Anaheim/Riverside Urban Consumer Price Index, not to exceed 7%, but a minimum of 3%, in any one annual increase. The lease expires on June 30, 2022.

We lease a building (17 Pasteur, Irvine, California) from a company that is owned by one of the co-founders of Tillys. We use this property as our e-commerce distribution center. We incurred rent expense of $1.0 million in each of the fiscal years 2019, 2018 and 2017, respectively, related to this lease. Pursuant to the lease agreement, the lease payment adjusts annually based upon the Los Angeles/Anaheim/Riverside Urban Consumer Price Index, not to exceed 7%, but a minimum of 3%, in any one annual increase. The lease expires on October 31, 2021.

The maturity of operating lease liabilities as of February 1, 2020 were as follows (in thousands):



Fiscal Year	Related Party		Other		Total
2020	$	3,438	$	62,773	$	66,211
2021	3,175		58,193		61,368
2022	2,246		51,774		54,020
2023	2,168		42,675		44,843
2024	2,233		32,116		34,349
Thereafter	6,693		68,034		74,727
Total minimum lease payments	19,953		315,565		335,518
Less: Interest	2,993		36,449		39,442
Present value of operating lease liabilities	$	16,960	$	279,116	$	296,076

As of February 2, 2019, future minimum rental commitments, including fixed non-lease components, under non-cancellable operating leases for the above buildings and all of our store locations were as follows (in thousands):



Fiscal Year	Related Party		Other		Total
2019	$	3,351	$	60,542	$	63,893
2020	3,451		56,681		60,132
2021	3,274		50,541		53,815
2022	2,278		41,893		44,171
2023	2,163		32,948		35,111
Thereafter	9,112		57,833		66,945
Total	$	23,629	$	300,438	$	324,067

As of February 1, 2020, additional operating lease contracts that have not yet commenced are approximately $5 million.

Lease expense for fiscal years 2019, 2018 and 2017 was as follows (in thousands):



	February 1, 2020						February 2, 2019						February 3, 2018
	COGS		SG&A		Total		COGS		SG&A		Total		COGS		SG&A		Total
Fixed operating lease expense	$	51,184	$	1,525	$	52,709	$	40,868	$	907	$	41,775	$	34,925	$	653	$	35,578
Variable lease expense	2,352		86		2,438		2,339		—		2,339		1,552		—		1,552
Total lease expense	$	53,536	$	1,611	$	55,147	$	43,207	$	907	$	44,114	$	36,477	$	653	$	37,130

Supplemental lease information for the year ended February 1, 2020 was as follows:



Cash paid for amounts included in the measurement of operating lease liabilities (in thousands)	$65,458
Weighted average remaining lease term (in years)	6.2 years
Weighted average interest rate (1)	4.03%

(1) Since our leases do not provide an implicit rate, we used our incremental borrowing rate on date of adoption or at lease inception in determining the present value of future minimum payments.