Leases

9 Months Ended

Oct. 29, 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 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
		October 29, 2022		October 30, 2021
Operating lease cost (a)	$	17,919	$	17,509
Variable lease cost (b)	$	707	$	660
(a) Includes right-of-use asset amortization of ($0.4) million and ($0.4) million for the three months ended October 29, 2022 and October 30, 2021, respectively.
(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

	Nine Months Ended
		October 29, 2022		October 30, 2021
Operating lease cost (a)	$	53,521	$	51,569
Variable lease cost (b)	$	2,053	$	2,153
(a) Includes right-of-use asset amortization of ($1.3) million and ($2.1) million for the nine months ended October 29, 2022 and October 30, 2021, respectively.
(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

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
	October 29, 2022		October 30, 2021
Cash paid for amounts included in the measurement of lease liabilities	$	17,264	$	16,485
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	2,107	$	1,705

	Nine Months Ended
	October 29, 2022		October 30, 2021
Cash paid for amounts included in the measurement of lease liabilities	$	51,138	$	48,158
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	8,156	$	23,718

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

	As of
	October 29, 2022	October 30, 2021
Weighted-average remaining lease term	2.0 years	2.0 years
Weighted-average discount rate	2.84%	3.42%

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

Fiscal Year
2022 (a)	$	16,940
2023		54,623
2024		38,184
2025		22,878
2026		11,426
Thereafter		3,733
Total lease payments		147,784
Less: Imputed interest		6,439
Present value of lease liabilities	$	141,345
(a) Excluding the nine months ended October 29, 2022