Leases

6 Months Ended

Jul. 30, 2022

Leases [Abstract]

Leases

NOTE 12 – LEASES:

The Company determines whether an arrangement is a lease at inception. The Company has operating leases for stores, offices and equipment. Its leases have remaining lease terms of up to 10 years based on the estimated likelihood of renewal. Some include options to extend the lease term for up to five years, and some of which include options to terminate the lease within one year. The Company considers these options in determining the lease term used to establish its right-of-use assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date of the lease in determining the present value of lease payments.

The components of lease cost are shown below (in thousands):

	Three Months Ended
		July 30, 2022		July 31, 2021
Operating lease cost (a)	$	17,847	$	17,334
Variable lease cost (b)	$	578	$	700
(a) Includes right-of-use asset amortization of ($0.5) million and ($0.5) million for the three months ended July 30, 2022 and July 31, 2021, respectively.
(b) Primarily related to monthly percentage rent for stores not presented on the balance sheet.

	Six Months Ended
		July 30, 2022		July 31, 2021
Operating lease cost (a)	$	35,602	$	34,060
Variable lease cost (b)	$	1,346	$	1,493
(a) Includes right-of-use asset amortization of ($0.9) million and ($1.6) million for the six months ended July 30, 2022 and July 31, 2021, respectively.
(b) Primarily related to monthly percentage rent for stores not presented on the balance sheet.

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands):

Operating cash flow information:
	Three Months Ended
	July 30, 2022		July 31, 2021
Cash paid for amounts included in the measurement of lease liabilities	$	17,038	$	15,726
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	2,534	$	26,157

	Six Months Ended
	July 30, 2022		July 31, 2021
Cash paid for amounts included in the measurement of lease liabilities	$	33,874	$	31,673
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	6,049	$	25,423

Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows:

	As of
	July 30, 2022	July 31, 2021
Weighted-average remaining lease term	2.2 years	2.4 years
Weighted-average discount rate	2.89%	3.47%

Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands):

Fiscal Year
2022 (a)	$	30,661
2023		55,462
2024		38,913
2025		23,402
2026		12,006
Thereafter		3,395
Total lease payments		163,839
Less: Imputed interest		7,346
Present value of lease liabilities	$	156,493
(a) Excluding the six months ended July 30, 2022.