Leases

12 Months Ended

Feb. 02, 2020

Leases [Abstract]

Leases

LeasesThe Company leases all of its fulfillment and customer service centers and corporate offices under non-cancelable operating lease agreements. The terms of the Company’s real estate leases generally range from 5 to 15 years and typically allow for the leases to be renewed for up to three additional five-year terms. Fulfillment and customer service centers and corporate office leases, including exercised renewal options, expire at various dates through 2031. The Company also leases certain equipment under operating and finance leases. The terms of equipment leases generally range from 3 to 5 years and do not contain renewal options. These leases expire at various dates through 2024.

The Company’s finance leases as of February 2, 2020 were not material. The table below presents the operating lease-related assets and liabilities recorded on the consolidated balance sheets (in thousands):

Leases	Balance Sheet Classification	As of February 2, 2020
Assets
Operating	Operating lease right-of-use assets	$	179,052
Total operating lease assets		$	179,052
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	15,491
Non-current
Operating	Operating lease liabilities	200,439
Total operating lease liabilities		$	215,930

For Fiscal Year 2019, assets acquired in exchange for new operating lease liabilities were $30.7 million. Lease expense primarily related to operating lease costs. Lease expense for Fiscal Year 2019 was $47.9 million, of which short-term and variable lease payments were $9.3 million, and were included within selling, general and administrative expenses in the consolidated statements of operations.

As of February 2, 2020, the weighted-average remaining lease term and weighted-average discount rate for operating leases was 10.4 years and 11.3%, respectively.

Operating cash flows related to cash paid for operating leases were approximately $37.9 million for Fiscal Year 2019.

The table below presents the maturity of lease liabilities as of February 2, 2020 (in thousands):

	Operating Leases
2020	$	36,518
2021	37,663
2022	35,536
2023	30,821
2024	29,471
Thereafter	231,191
Total lease payments	401,200
Less: interest	185,270
Present value of lease liabilities	$	215,930

The table above includes all locations for which the Company had the right to control the use of the property. In addition, as of February 2, 2020 the Company had lease arrangements which had not yet commenced with total future lease payments of approximately $125 million. The lease term for these lease arrangements is approximately 16 years.