Lease Accounting (Tables)

12 Months Ended

Feb. 01, 2020

Leases [Abstract]

Assets and liabilities, lessee

As of February 1, 2020, the components of leases and lease costs are as follows (in thousands):

		Feb 1, 2020
Assets	Balance Sheet Location
Operating	Operating right-of-use assets	$	851,990
Finance	Property and equipment, net	15,972
Total lease assets		$	867,962
Liabilities	Balance Sheet Location
Current:
Operating	Current portion of operating lease liabilities	$	192,066
Finance	Current portion of borrowings and finance lease obligations	2,273
Noncurrent:
Operating	Long-term operating lease liabilities	714,079
Finance	Long-term debt and finance lease obligations	14,262
Total lease liabilities		$	922,680

Lease cost

		Year Ended Feb 1, 2020
	Income Statement Location
Operating lease costs1	Cost of product sales	$	244,222
Operating lease costs1	Selling, general and administrative expenses	24,565
Finance lease costs
Amortization of leased assets2	Cost of product sales	2,793
Amortization of leased assets2	Selling, general and administrative expenses	4,197
Interest on lease liabilities	Interest expense	1,035
Variable lease costs1	Cost of product sales	93,534
Variable lease costs1	Selling, general and administrative expenses	2,227
Short-term lease costs1	Cost of product sales	344
Short-term lease costs1	Selling, general and administrative expenses	3,543
Total lease costs		$	376,460

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¹   Rental expense for all property and equipment operating leases during fiscal 2019 and fiscal 2018 aggregated to $292.1 million and $272.3 million, respectively, including percentage rent of $67.2 million and $61.2 million, respectively. During fiscal 2019 and fiscal 2018, the Company also recognized insurance, taxes, sales promotion, common area maintenance and certain utility charges that were paid to the landlord totaling $72.3 million and $75.6 million, respectively, related to its operating leases.

²  

Amortization of leased assets related to finance leases are included in depreciation expense within cost of product sales or selling, general and administrative expenses depending on the nature of the asset in the Company’s consolidated statements of income (loss).

Operating lease liabilities maturity schedule

Maturities of the Company’s operating and finance lease liabilities as of February 1, 2020 are as follows (in thousands):

	Operating Leases
	Non-Related Parties		Related Parties		Finance Leases		Total
Maturity of Lease Liabilities:
2021	$	218,109	$	2,255	$	3,349	$	223,713
2022	197,857		257		3,653		201,767
2023	165,367		—		3,249		168,616
2024	137,637		—		3,092		140,729
2025	95,058		—		2,311		97,369
After 2025	186,781		—		4,922		191,703
Total lease payments	1,000,809		2,512		20,576		1,023,897
Less: Interest	97,132		44		4,041		101,217
Present value of lease liabilities	$	903,677	$	2,468	$	16,535	$	922,680

Finance lease liabilities maturity schedule

Maturities of the Company’s operating and finance lease liabilities as of February 1, 2020 are as follows (in thousands):

	Operating Leases
	Non-Related Parties		Related Parties		Finance Leases		Total
Maturity of Lease Liabilities:
2021	$	218,109	$	2,255	$	3,349	$	223,713
2022	197,857		257		3,653		201,767
2023	165,367		—		3,249		168,616
2024	137,637		—		3,092		140,729
2025	95,058		—		2,311		97,369
After 2025	186,781		—		4,922		191,703
Total lease payments	1,000,809		2,512		20,576		1,023,897
Less: Interest	97,132		44		4,041		101,217
Present value of lease liabilities	$	903,677	$	2,468	$	16,535	$	922,680

Other supplemental information

Other supplemental information as of February 1, 2020 is as follows (dollars in thousands):

	Feb 1, 2020
Lease Term and Discount Rate:
Weighted-average remaining lease term (years)
Operating leases	5.9 years
Finance leases	6.4 years
Weighted-average discount rate
Operating leases	3.5%
Finance leases	7.1%

	Year Ended Feb 1, 2020
Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	250,972
New operating ROU assets obtained in exchange for lease liabilities	127,232