(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 consolidated statements of income based on our accounting policy. Refer to Note 3—Significant Accounting Policies.

(2)	Included in interest expense—net on the consolidated statements of income.

(3)

Represents variable lease payments under operating and finance lease agreements, primarily associated with contingent rent based on a percentage of retail sales over contractual levels of $13.4 million, $14.6 million and $13.0 million, respectively, and charges associated with common area maintenance of $7.1 million, $8.9 million and $8.9 million in fiscal 2020, fiscal 2019 and fiscal 2018, respectively. Other variable costs include single lease cost related to variable lease payments based on an index or rate that were not included in the measurement of the initial lease liability and right-of-use asset were not material in fiscal 2020, fiscal 2019 and fiscal 2018.

(4)	Included as an offset to selling, general and administrative expenses on the consolidated statements of income.

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


		JANUARY 30,		FEBRUARY 1,
		2021		2020
	Balance Sheet Classification
Assets
Operating leases	Operating lease right-of-use assets	$	456,164	$	410,904
Finance leases ⁽¹⁾⁽²⁾	Property and equipment—net		711,804		642,117
Total lease right-of-use assets		$	1,167,968	$	1,053,021
Liabilities
Current⁽³⁾
Operating leases	Operating lease liabilities	$	71,524	$	58,924
Finance leases	Other current liabilities		14,671		9,188
Total lease liabilities—current			86,195		68,112
Non-current
Operating leases	Non-current operating lease liabilities		448,169		409,930
Finance leases	Non-current finance lease liabilities		485,481		442,988
Total lease liabilities—non-current			933,650		852,918
Total lease liabilities		$	1,019,845	$	921,030

(1)	Finance lease right-of-use assets include capitalized amounts related to our completed construction activities to design and build leased assets, which are reclassified from other non-current assets upon lease commencement.

(2)	Finance lease right-of-use assets are recorded net of accumulated amortization of $133.0 million and $92.3 million as of January 30, 2021 and February 1, 2020, respectively.

(3)	Current portion of lease liabilities represents the reduction of the related lease liability over the next 12 months.

The maturities of lease liabilities are as follows as of January 30, 2021 (in thousands):


	OPERATING		FINANCE
FISCAL YEAR	LEASES		LEASES		TOTAL
2021	$	90,361	$	38,786	$	129,147
2022		79,294		39,203		118,497
2023		71,580		39,613		111,193
2024		65,332		39,984		105,316
2025		64,984		41,173		106,157
Thereafter		251,637		594,460		846,097
Total lease payments⁽¹⁾⁽²⁾		623,188		793,219		1,416,407
Less—imputed interest ⁽³⁾		(103,495)		(293,067)		(396,562)
Present value of lease liabilities	$	519,693	$	500,152	$	1,019,845

(1)

Total lease payments include future obligations for renewal options that are reasonably certain to be exercised and are included in the measurement of the lease liability. Total lease payments exclude $793.5 million of legally binding payments under the non-cancellable term for leases signed but not yet commenced under our accounting policy as of January 30, 2021, of which $28.3 million, $38.9 million, $43.9 million, $45.6 million and $47.1 million will be paid in fiscal 2021, fiscal 2022, fiscal 2023, fiscal 2024 and fiscal 2025, respectively, and $589.7 million will be paid subsequent to fiscal 2025.

(2)	Excludes future commitments under short-term lease agreements of $0.7 million as of January 30, 2021.

(3)	Calculated using the discount rate for each lease at lease commencement.

Supplemental information related to leases consists of the following:


	JANUARY 30,		FEBRUARY 1,
	2021		2020
Weighted-average remaining lease term (years)
Operating leases		8.7		8.9
Finance leases		18.4		18.6
Weighted-average discount rate
Operating leases		3.97%		3.82%
Finance leases		5.04%		5.25%

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


	YEAR ENDED
	JANUARY 30,		FEBRUARY 1,		FEBRUARY 2,
	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(75,794)	$	(95,329)	$	(91,965)
Operating cash flows from finance leases		(20,839)		(25,260)		(16,785)
Financing cash flows from finance leases		(12,498)		(9,682)		(6,885)
Total cash outflows from leases	$	(109,131)	$	(130,271)	$	(115,635)
Lease right-of-use assets obtained in exchange for lease obligations—net of lease terminations (non-cash)
Operating leases	$	113,828	$	34,063	$	174,977
Finance leases		57,873		42,122		33,790

Asset Held for Sale and Sale-Leaseback Transaction

During fiscal 2020, we executed a sale-leaseback transaction for the Minneapolis Design Gallery for sales proceeds of $25.5 million, which qualified for sale-leaseback accounting in accordance with ASC 842. Concurrently with the sale, we entered into an operating leaseback arrangement with an initial lease term of 20 years and a renewal option for an additional 10 years. We recognized a loss related to the execution of the sale transaction of $9.4 million in fiscal 2020, which was recorded in selling, general and administrative expenses on the consolidated statements of income.

During fiscal 2018, we committed to a plan to sell the Yountville Design Gallery, which resulted in a reclassification of such Gallery from property and equipment—net to asset held for sale on the consolidated balance sheets as of February 2, 2019. We performed an assessment and determined that based on our best estimate of the fair value of such Gallery as of February 2, 2019, the Gallery had an impairment of $8.5 million in fiscal 2018 in the RH Segment. During fiscal 2019, we executed a sale-leaseback transaction for the Yountville Design Gallery for sales proceeds of $23.5 million, which qualified for sale-leaseback accounting in accordance with ASC 842. Concurrently with the sale, we entered into an operating leaseback arrangement with an initial lease term of 15 years and renewal options for up to an additional 30 years. We recognized a gain related to the execution of the sale transaction of $1.2 million in fiscal 2019, which was recorded in selling, general and administrative expenses on the consolidated statements of income.