LEASES
The following components of lease expense were recognized in the Company’s Consolidated Statements of Operations:
| | | | | | | | | | | | | | | | | |
| | Fiscal Years Ended |
| February 1, 2025 | | February 3, 2024 | | January 28, 2023 |
| (in thousands) |
| Fixed operating lease cost | $ | 90,129 | | | $ | 91,066 | | | $ | 99,988 | |
| Variable operating lease cost | 24,425 | | | 44,195 | | | 51,905 | |
| Total operating lease cost | $ | 114,554 | | | $ | 135,261 | | | $ | 151,893 | |
The following table provides the weighted-average remaining lease term of the Company’s operating leases, the weighted-average discount rate used to calculate the Company’s operating liabilities, cash paid for amounts included in the measurement of the Company’s operating lease liabilities, and ROU assets obtained in exchange for the Company’s new operating lease liabilities: | | | | | | | | | | | |
| | Fiscal Years Ended |
| February 1, 2025 | | February 3, 2024 |
| Weighted-average remaining lease term (years) | 4.3 | | 4.2 |
| Weighted average discount rate (%) | 8.1 | | | 7.1 | |
| Cash paid for amounts included in the measurement of operating lease liabilities ($, in millions) | 79.1 | | | 93.4 | |
| ROU assets obtained in exchange for new operating lease liabilities ($, in millions) | 71.8 | | | 120.5 | |
As of February 1, 2025, the maturities of operating lease liabilities were as follows:
| | | | | | |
| February 1, 2025 |
| (in thousands) |
| 2025 | $ | 78,499 | | |
| 2026 | 49,253 | | |
| 2027 | 23,993 | | |
| 2028 | 16,325 | | |
| 2029 | 10,715 | | |
| Thereafter | 34,642 | | |
| Total operating lease payments | 213,427 | | |
| Less: imputed interest | (38,733) | | |
| Present value of operating lease liabilities | $ | 174,694 | | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.