XML 87 R31.htm IDEA: XBRL DOCUMENT v3.19.2
Leases (Tables)
6 Months Ended
Aug. 03, 2019
Leases [Abstract]  
Summary of lease costs

Lease costs—net consist of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

August 3,

    

August 4,

​

August 3,

    

August 4,

​

    

2019

    

2018

​

2019

    

2018

Operating lease cost (1)(2)

​

$

23,259

​

$

22,743

 

$

42,376

​

$

44,089

​

​

​

​

​

​

​

​

​

​

​

​

​

Finance lease costs

​

​

​

​

​

​

​

​

​

​

​

​

Amortization of leased assets (1)

​

​

9,235

​

​

6,441

​

​

18,087

​

​

12,340

Interest on lease liabilities (3)

​

​

5,672

​

​

3,319

​

​

11,186

​

​

6,411

​

​

​

​

​

​

​

​

​

​

​

​

​

Sublease income (4)

​

​

(1,507)

​

​

(2,261)

​

​

(4,789)

​

​

(3,271)

Total lease costs—net

​

$

36,659

​

$

30,242

​

$

66,860

​

$

59,569

(1)Operating lease costs and amortization of finance lease right-of-use assets are included in cost of goods sold or selling, general and administrative expenses on the condensed consolidated statements of income based on the Company’s policy. Refer to Note 3—Significant Accounting Policies in the 2018 Form 10-K.
(2)Includes short-term leases and variable lease costs.
(3)Included in interest expense—net on the condensed consolidated statements of income.
(4)Included in selling, general and administrative expenses on the condensed consolidated statements of income.
Summary of lease right-of-use assets and lease liabilities

Lease right-of-use assets and lease liabilities consist of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

August 3,

​

February 2,

​

​

​

​

2019

​

2019

​

​

Balance Sheet Classification

​

​

​

​

​

​

Assets

​

​

​

​

​

​

​

​

Operating leases

​

Operating lease right-of-use assets

​

$

421,001

​

$

440,504

Finance leases (1)(2)

​

Property and equipment—net

​

​

650,699

​

​

646,875

Total lease right-of-use assets

​

​

​

​

1,071,700

​

​

1,087,379

​

​

​

​

​

​

​

​

​

Liabilities

​

​

​

​

​

​

​

​

Current

​

​

​

​

​

​

​

​

Operating leases

​

Operating lease liabilities

​

$

57,162

​

$

66,249

Finance leases

​

Other current liabilities

​

​

8,127

​

​

9,184

Total lease liabilities—current

​

​

​

​

65,289

​

​

75,433

​

​

​

​

​

​

​

​

​

Non-current

​

​

​

​

​

​

​

​

Operating leases

​

Non-current operating lease liabilities

​

$

415,803

​

$

437,557

Finance leases

​

Non-current finance lease liabilities

​

​

433,591

​

​

421,245

Total lease liabilities—non-current

​

​

​

​

849,394

​

​

858,802

Total lease liabilities

​

​

​

$

914,683

​

$

934,235

(1)Finance lease right-of-use assets include capitalized amounts related to the Company’s construction activities to design and build leased assets, as well as rent payments made to landlords for which the respective Galleries are not yet opened.
(2)Finance lease right-of-use assets are recorded net of accumulated amortization of $73.3 million and $55.5 million as of August 3, 2019 and February 2, 2019, respectively.

​

Summary of maturities of operating lease liabilities

The maturities of lease liabilities are as follows as of August 3, 2019 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

Fiscal year

    

Operating
Leases

    

Finance
Leases

    

Total

Remainder of fiscal 2019

​

$

33,456

​

$

14,014

​

$

47,470

2020

​

​

78,990

​

​

33,456

​

​

112,446

2021

​

​

65,068

​

​

33,908

​

​

98,976

2022

​

​

57,226

​

​

34,385

​

​

91,611

2023

​

​

53,867

​

​

35,153

​

​

89,020

2024

​

​

49,901

​

​

35,689

​

​

85,590

Thereafter

​

​

228,093

​

​

548,302

​

​

776,395

Total lease payments (1)

​

​

566,601

​

​

734,907

​

​

1,301,508

Less—imputed interest (2)

​

​

(93,636)

​

​

(293,189)

​

​

(386,825)

Present value of lease liabilities (3)

​

$

472,965

​

$

441,718

​

$

914,683

(1)Total lease payments exclude $369.1 million of legally binding payments for leases signed but not yet commenced as of August 3, 2019.
(2)Calculated using the incremental borrowing rate for each lease at lease commencement.
(3)Excludes future commitments under short-term lease agreements of $1.4 million as of August 3, 2019.

​

Summary of maturities of finance lease liabilities

​

​

​

​

​

​

​

​

​

​

​

Fiscal year

    

Operating
Leases

    

Finance
Leases

    

Total

Remainder of fiscal 2019

​

$

33,456

​

$

14,014

​

$

47,470

2020

​

​

78,990

​

​

33,456

​

​

112,446

2021

​

​

65,068

​

​

33,908

​

​

98,976

2022

​

​

57,226

​

​

34,385

​

​

91,611

2023

​

​

53,867

​

​

35,153

​

​

89,020

2024

​

​

49,901

​

​

35,689

​

​

85,590

Thereafter

​

​

228,093

​

​

548,302

​

​

776,395

Total lease payments (1)

​

​

566,601

​

​

734,907

​

​

1,301,508

Less—imputed interest (2)

​

​

(93,636)

​

​

(293,189)

​

​

(386,825)

Present value of lease liabilities (3)

​

$

472,965

​

$

441,718

​

$

914,683

(1)Total lease payments exclude $369.1 million of legally binding payments for leases signed but not yet commenced as of August 3, 2019.
(2)Calculated using the incremental borrowing rate for each lease at lease commencement.
(3)Excludes future commitments under short-term lease agreements of $1.4 million as of August 3, 2019.

​

Summary of supplemental information related to leases

Supplemental information related to leases consists of the following:

​

​

​

​

​

​

​

​

​

Six Months Ended

​

​

August 3,

​

​

August 4,

​

    

2019

    

​

2018

Weighted-average remaining lease term (years)

​

​

​

​

​

​

Operating leases

​

​

8.9

​

​

9.6

Finance leases

​

​

18.9

​

​

18.4

​

​

​

​

​

​

​

Weighted-average discount rate

​

​

​

​

​

​

Operating leases

​

​

3.81%

​

​

3.74%

Finance leases

​

​

5.26%

​

​

4.95%

​

Summary of other information related to leases

Other information related to leases consists of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

Six Months Ended

​

​

August 3,

​

​

August 4,

​

    

2019

    

​

2018

Cash paid for amounts included in the measurement of lease liabilities

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

(53,670)

​

$

(54,287)

Operating cash flows from finance leases

​

​

(11,186)

​

​

(6,411)

Financing cash flows from finance leases

​

​

(4,399)

​

​

(3,567)

Total cash outflows from leases

​

$

(69,255)

​

$

(64,265)

​

​

​

​

​

​

​

Lease right-of-use assets obtained in exchange for lease obligations (non-cash)

​

​

​

​

​

​

Finance leases

​

$

17,997

​

$

27,874

Operating leases

​

​

13,839

​

​

15,024

​