(11)   Leases

The Company leases certain property and equipment, such as transmission and production equipment, 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 retailer, J.W. Hulme. 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 July 31, 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:

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For the three-month periods ended July 31, 2021 and August 1, 2020, finance lease costs included amortization of right-of-use assets of $24,000 and $25,000 and interest on lease liabilities of $1,000 and $1,000. For the six-month periods ended July 31, 2021 and August 1, 2020, finance lease costs included amortization of right-of-use assets of $58,000 and $50,000 and interest on lease liabilities of $2,000 and $3,000.

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Supplemental cash flow information related to leases were as follows:

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

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Supplemental balance sheet information related to leases is as follows:

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Future maturities of lease liabilities as of July 31, 2021 are as follows:

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As of July 31, 2021, the Company had no operating or finance leases that had not yet commenced.