LEASES

9 Months Ended

Oct. 28, 2023

The Company leases retail stores, a limited amount of office space, and certain equipment under operating leases expiring in various years through the fiscal year ending 2033. All of our leases have been classified as operating leases and are recognized and measured as such.

Certain operating leases provide for renewal options that are at a pre-determined period and rental value. Furthermore, certain leases provide that we may cancel the lease if our retail sales at that location fall below an established level. In the normal course of business, operating leases are typically renewed or replaced by other leases.

Escalation of operating lease payments of certain leases depend on an existing index or rate, such as the consumer price index or the market interest rate. These are considered variable lease payments and are included in lease payments when the escalation is known.

Operating lease expense was as follows:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Operating lease cost (1)	$	58,132	$	55,608	$	169,916	$	163,271

(1) For the thirteen and thirty-nine weeks ended October 28, 2023, includes $14.3 million and $41.1 million, respectively, in variable lease costs. For the thirteen and thirty-nine weeks ended October 29, 2022, includes $9.7 million and $28.5 million, respectively, in variable lease costs.

Supplemental balance sheet information related to operating leases was as follows:


	October 28, 2023			January 28, 2023			October 29, 2022
Right of use assets	$	466,888		$	435,321		$	432,018

Current lease liabilities	$	150,053		$	153,202		$	157,687
Long-term lease liabilities	373,823			349,409			346,560
Total operating lease liabilities	$	523,876		$	502,611		$	504,247

Weighted Average Remaining Lease Term (years)	4.4			4.2			4.1

Weighted Average Discount Rate (1)	5.9		%	5.3		%	5.0		%

(1) The incremental borrowing rate used by the Company is based on the rate at which the Company could borrow funds using its credit rating for a collateralized loan of similar term to the lease. The weighted average discount rate represents a weighted average of the incremental borrowing rate for each lease, weighted based on the remaining fixed lease obligations.

Supplemental cash flow information related to operating leases was as follows:


	Thirty-Nine Weeks Ended
	October 28, 2023		October 29, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows	$	145,729	$	155,561
Right of use assets obtained in exchange for lease obligations, non-cash	145,342		88,484

Maturities of operating lease liabilities as of October 28, 2023 were as follows:


Fiscal Year Ending:
February 3, 2024	$	48,986
February 1, 2025	171,076
January 31, 2026	129,459
January 30, 2027	95,434
January 29, 2028	66,278
Thereafter	92,906
Total future minimum lease payments	$	604,139
Less imputed interest	(80,263)
Total	$	523,876