Lease Commitments

6 Months Ended

Aug. 01, 2020

The Company leases its store locations and vehicles under operating leases. The store lease terms, including rental period, renewal options, escalation clauses and rent as a percentage of sales, vary among the leases. Most store leases require the Company to pay real estate taxes and common area maintenance charges. In addition, we have lease agreements that contain both lease and non-lease components. We have elected to combine lease and non-lease components for all classes of assets.

For the Company's current lease obligations, no explicit interest rates were stated in the lease agreements and no implicit rates could be determined based on the terms of the agreements. Therefore, in all cases, the Company has applied a formula-based incremental borrowing rate appropriate to the type of lease and lease term.

Maturities of our lease liabilities as of August 1, 2020 were as follows:



(in thousands)	Lease Liabilities⁽¹⁾
Remainder of 2020	$	16,456
2021	28,024
2022	23,863
2023	22,398
2024	19,018
Thereafter	28,282
Total lease payments	138,041
Less: Imputed interest	(23,679		)
Present value of lease liabilities	114,362
Less: Current lease liabilities	(24,535		)
Long-term lease liabilities	$	89,827


⁽¹⁾	Includes retail stores and the corporate headquarters facility, including the distribution center.

Maturities of our lease liabilities as of February 1, 2020 were as follows:



(in thousands)	Lease Liabilities⁽¹⁾
2020	$	32,904
2021	27,326
2022	23,028
2023	21,929
2024	18,558
Thereafter	26,760
Total lease payments	150,505
Less: Imputed interest	(24,527		)
Present value of lease liabilities	125,978
Less: Current lease liabilities	(26,185		)
Long-term lease liabilities	$	99,793


⁽¹⁾	Includes retail stores and the corporate headquarters facility, including the distribution center.

The weighted average remaining lease terms and discount rates for all leases as of August 1, 2020 were as follows:



Remaining lease term and discount rate:	August 1, 2020
Weighted average remaining lease term (years)	5.5
Weighted average discount rate	5.7	%

Operating lease expense for the thirteen weeks ended August 1, 2020 totaled approximately $8.8 million, with $0.5 million of that amount representing operating lease variable rent that was recorded in cost of sales. In addition, all but $12 thousand of the $8.3 million of non-variable operating lease rent is included in cost of sales. $12 thousand dollars of operating lease expense is included in selling, general and administrative expenses. For the thirteen weeks ended August 1, 2020, cash lease payments were $7.5 million, and right-of-use assets obtained in exchange for lease liabilities were zero.

Operating lease expense for the twenty-six weeks ended August 1, 2020 totaled approximately $17.7 million, with $0.7 million of that amount representing operating lease variable rent that was recorded in cost of sales. In addition, all but $19 thousand of the $17.0 million of non-variable operating lease rent is included in cost of sales. $19 thousand dollars of operating lease expense is included in selling, general and administrative expenses. For the twenty-six weeks ended August 1, 2020, cash lease payments were $16.0 million, and right-of-use assets obtained in exchange for lease liabilities were $1.1 million.