Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
9 Months Ended
Oct. 30, 2021
Leases [Abstract]  
Leases

(11)   Leases

The Company leases certain property and equipment, such as transmission, production, satellite transponder and office equipment. The Company also leases office space used by its Emerging segment’s iMedia Digital Services and retail space used by its Emerging

segment consumer brands, J.W. Hulme and Christopher Banks. The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the accompanying condensed consolidated balance sheets.

Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Some of the Company’s leases include options to extend the term, which is only included in the lease liability and right-of-use assets calculation when it is reasonably certain the Company will exercise that option. As of October 30, 2021, the lease liability and right-of-use assets did not include any lease extension options.

The Company has lease agreements with lease and non-lease components and has elected to account for these as a single lease component. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The components of lease expense were as follows:

    

For the Three-Month Periods Ended

    

For the Nine-Month Periods Ended

    

October 30, 2021

October 31, 2020

October 30, 2021

October 31, 2020

Operating lease cost

$

323,000

$

241,000

$

884,000

$

731,000

Short-term lease cost

 

34,000

 

15,000

 

64,000

 

60,000

Variable lease cost (a)

 

31,000

 

19,000

 

73,000

 

72,000

(a) Includes variable costs of finance leases.

For the three-month periods ended October 30, 2021 and October 31, 2020, finance lease costs included amortization of right-of-use assets of $16,000 and $26,000 and interest on lease liabilities of $1,000 and $2,000. For the nine-month periods ended October 30, 2021 and October 31, 2020, finance lease costs included amortization of right-of-use assets of $70,000 and $76,000 and interest on lease liabilities of $2,300 and $5,000.

Supplemental cash flow information related to leases were as follows:

    

For the Nine-Month Periods Ended

    

October 30, 2021

October 31, 2020

Cash paid for amounts included in the measurement of lease liabilities:

 

  

 

  

 

Operating cash flows used for operating leases

$

822,000

$

824,000

Operating cash flows used for finance leases

 

2,000

 

5,000

Financing cash flows used for finance leases

70,000

75,000

Right-of-use assets obtained in exchange for lease liabilities:

Operating leases

3,268,000

1,299,000

Finance leases

 

 

62,000

The weighted average remaining lease term and weighted average discount rates related to leases were as follows:

    

October 30 2021

    

October 31, 2020

    

Weighted average remaining lease term:

 

  

 

  

 

Operating leases

 

3.5 years

 

2.6 years

 

Finance leases

 

0.6 years

 

1.3 years

 

Weighted average discount rate:

 

  

 

  

 

Operating leases

 

6.4%

 

6.8%

 

Finance leases

 

5.8%

 

5.7%

 

Supplemental balance sheet information related to leases is as follows:

October 30,

January 30,

Leases

    

Classification

    

2021

    

2021

    

Assets

 

  

 

  

 

  

 

Operating lease right-of-use assets

 

Other assets

$

3,523,000

$

1,116,000

Finance lease right-of-use assets

 

Property and equipment, net

 

35,000

 

101,000

Total lease right-of-use assets

 

  

$

3,558,000

$

1,217,000

Operating lease liabilities

 

  

 

  

 

  

Current portion of operating lease liabilities

 

Current portion of operating lease liabilities

$

1,046,000

$

462,000

Operating lease liabilities, excluding current portion

 

Other long term liabilities

 

2,568,000

 

646,000

Total operating lease liabilities

 

  

 

3,614,000

 

1,108,000

Finance lease liabilities

 

  

 

  

 

  

Current portion of finance lease liabilities

 

Current liabilities: Accrued liabilities

 

35,000

 

86,000

Finance lease liabilities, excluding current portion

 

Other long term liabilities

 

 

19,000

Total finance lease liabilities

 

  

 

35,000

 

105,000

Total lease liabilities

 

  

$

3,649,000

$

1,213,000

Future maturities of lease liabilities as of October 30, 2021 are as follows:

Fiscal year

    

Operating Leases

    

Finance Leases

2021

$

320,000

$

17,000

2022

 

1,271,000

 

19,000

2023

 

1,106,000

 

2024

 

889,000

 

Thereafter

 

708,000

 

Total lease payments

 

4,294,000

 

36,000

Less imputed interest

 

(680,000)

 

(1,000)

Total lease liabilities

$

3,614,000

$

35,000

As of October 30, 2021, the Company had no operating or finance leases that had not yet commenced.