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Lease Accounting (Tables)
 6 Months Ended
Jul. 31, 2021
Leases [Abstract]  
Assets and liabilities, lessee
The components of leases are (in thousands):
Jul 31, 2021Jan 30, 2021
AssetsBalance Sheet Location
OperatingOperating lease right-of-use assets$727,636 $764,804 
FinanceProperty and equipment, net23,172 20,595 
Total lease assets$750,808 $785,399 
LiabilitiesBalance Sheet Location
Current:
OperatingCurrent portion of operating lease liabilities$214,392 $222,800 
FinanceCurrent portion of borrowings and finance lease obligations6,153 4,698 
Noncurrent:
OperatingLong-term operating lease liabilities623,040 662,657 
FinanceLong-term debt and finance lease obligations18,641 17,365 
Total lease liabilities$862,226 $907,520 
Lease cost The components of lease costs are (in thousands):
Three Months EndedSix Months Ended
Income Statement LocationJul 31, 2021Aug 1, 2020Jul 31, 2021Aug 1, 2020
Operating lease costsCost of product sales$45,776 $50,005 $92,460 $105,374 
Operating lease costsSelling, general and administrative expenses6,189 5,355 12,546 10,531 
Operating lease costs1, 2
Net gains on lease modifications(420)(885)(2,565)(429)
Finance lease costs
Amortization of leased assets3
Cost of product sales17 20 28 32 
Amortization of leased assets3
Selling, general and administrative expenses1,406 474 2,767 1,338 
Interest on lease liabilitiesInterest expense263 208 629 490 
Variable lease costs4
Cost of product sales16,640 13,209 32,379 27,557 
Variable lease costs4
Selling, general and administrative expenses445 638 1,019 1,217 
Short-term lease costsCost of product sales126 181 231 420 
Short-term lease costsSelling, general and administrative expenses1,123 170 2,294 1,959 
Total lease costs1
$71,565 $69,375 $141,788 $148,489 
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Notes:
1The Company has made certain reclassifications to prior period amounts to conform to the current period presentation.
2During the three and six months ended July 31, 2021 and August 1, 2020, net gains on lease modifications related primarily to the early termination of lease agreements for certain of the Company’s retail locations. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales.
3Amortization 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 condensed consolidated statements of income (loss).
4During the three and six months ended July 31, 2021, variable lease costs included certain rent concessions of approximately $5.8 million and $11.9 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic. During the three and six months ended August 1, 2020, variable lease costs included certain rent concessions of approximately $7.7 million and $10.5 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic.
Operating lease liabilities maturity schedule
Maturities of the Company’s operating and finance lease liabilities as of July 31, 2021 are (in thousands):
Operating Leases
Maturity of Lease Liabilities Non-Related PartiesRelated PartiesFinance LeasesTotal
20221
$133,685 $4,450 $3,826 $141,961 
2023185,793 7,716 7,131 200,640 
2024151,520 7,939 7,121 166,580 
2025108,827 7,309 4,298 120,434 
202678,057 6,916 2,996 87,969 
After 2026189,134 36,362 3,109 228,605 
Total lease payments847,016 70,692 28,481 946,189 
Less: Interest68,825 11,451 3,687 83,963 
Present value of lease liabilities$778,191 $59,241 $24,794 $862,226 
______________________________________________________________________
Notes:
1Represents the maturity of lease liabilities for the remainder of fiscal 2022 and also includes rent payments that have been deferred due to the COVID-19 pandemic. This amount does not include payments made during the six months ended July 31, 2021.
Finance lease liabilities maturity schedule
Maturities of the Company’s operating and finance lease liabilities as of July 31, 2021 are (in thousands):
Operating Leases
Maturity of Lease Liabilities Non-Related PartiesRelated PartiesFinance LeasesTotal
20221
$133,685 $4,450 $3,826 $141,961 
2023185,793 7,716 7,131 200,640 
2024151,520 7,939 7,121 166,580 
2025108,827 7,309 4,298 120,434 
202678,057 6,916 2,996 87,969 
After 2026189,134 36,362 3,109 228,605 
Total lease payments847,016 70,692 28,481 946,189 
Less: Interest68,825 11,451 3,687 83,963 
Present value of lease liabilities$778,191 $59,241 $24,794 $862,226 
______________________________________________________________________
Notes:
1Represents the maturity of lease liabilities for the remainder of fiscal 2022 and also includes rent payments that have been deferred due to the COVID-19 pandemic. This amount does not include payments made during the six months ended July 31, 2021.
Other supplemental information
Other supplemental information is (dollars in thousands):
Lease Term and Discount RateJul 31, 2021
Weighted-average remaining lease term
Operating leases6.0 Years
Finance leases4.4 Years
Weighted-average discount rate
Operating leases3.4%
Finance leases6.5%
Six Months Ended
Supplemental Cash Flow InformationJul 31, 2021Aug 1, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$115,264 $70,890 
New operating ROU assets obtained in exchange for lease liabilities$63,238 $19,566