The expense components of the Company’s leases reflected on the Company’s condensed consolidated statement of operations were as follows:


	Consolidated Statement	Three Months Ended
	of Operations	May 3, 2026		May 4, 2025
(in thousands)
Finance lease expense
Amortization of right-of- use assets	Selling, general and administrative expenses	$	722	$	722
Interest on lease liabilities	Interest expense		339		368
Total finance lease expense		$	1,061	$	1,090
Operating lease expense	Selling, general and administrative expenses	$	4,871	$	4,898
Amortization of build-to- suit leases capital contribution	Selling, general and administrative expenses		321		321
Variable lease expense	Selling, general and administrative expenses		3,061		2,801
Total lease expense		$	9,314	$	9,110

Other information related to leases were as follows:


	Three Months Ended
	May 3, 2026			May 4, 2025
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	659		$	622
Operating cash flows from finance leases	$	339		$	368
Operating cash flows from operating leases	$	5,061		$	4,921

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	144		$	1,398

Weighted-average remaining lease term (in years):
Finance leases		9			10
Operating leases		6			6

Weighted-average discount rate:
Finance leases		4.5	%		4.5	%
Operating leases		4.7	%		4.4	%

Future minimum lease payments under the non-cancellable leases are as follows as of May 3, 2026:


Fiscal year	Finance			Operating
(in thousands)
2026 (remainder of fiscal year)	$	2,995		$	15,288
2027		3,993			19,182
2028		4,017			17,276
2029		4,217			14,638
2030		4,369			13,470
Thereafter		16,628			20,947
Total future minimum lease payments	$	36,219		$	100,801
Less – Discount		(6,257	)		(12,224	)
Lease liability	$	29,962		$	88,577

In the first quarter of 2026, the Company recorded an impairment charge of $2.7 million, which consisted of a right-of-use asset of $2.0 million and associated leasehold improvements of $0.7 million relating to the closure of the Salt Lake City fulfillment center as discussed in further detail in Note 13. The Company performed a recoverability test on the asset group. This test indicated that the carrying amount of the asset was not recoverable, as it exceeded the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the assets. Consequently, the Company proceeded to measure the impairment loss by comparing the asset group's carrying amount to its fair value. The fair value, which is considered to be a level 3 non-recurring fair value measurement, was determined using a discounted cash flow analysis (an income approach). The discounted cash flow analysis utilized level 3 fair value inputs including cash flow projections and discount rates. The resulting impairment charge of $2.7 million represents the amount by which the carrying value exceeded the calculated fair value. The impairment charge recorded is included in impairment of long-lived assets in the Company's condensed consolidated statement of operations for the three months ended May 3, 2026.