Ulta Beauty, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

6 Months Ended

Aug. 03, 2019

Schedule of weighted-average remaining lease term and discount rate for operating leases

The following table presents supplemental balance sheet information, the weighted-average remaining lease term, and discount rate for operating leases as of August 3, 2019:



(In thousands)	Classification on the Balance Sheet	August 3, 2019
Right-of-use assets	Operating lease assets	$	1,499,556

Current lease liabilities	Current operating lease liabilities		208,261
Non-current lease liabilities	Non-current operating lease liabilities		1,683,743
Total lease liabilities		$	1,892,004

Weighted-average remaining lease term			7.2 years
Weighted-average discount rate			4.1%

Summary of information related to lease costs for operating leases

The following table presents the components of lease cost for operating leases:


		13 Weeks Ended		26 Weeks Ended
(In thousands)	Classification on the Statement of Income	August 3, 2019		August 3, 2019
Operating lease cost	Cost of sales (1)	$	71,579	$	142,921
Variable lease cost	Cost of sales		(1,524)		(3,324)
Short-term lease cost	Selling, general and administrative expenses		73		138
Sublease income	Net sales		(149)		(290)
Total lease cost		$	69,979	$	139,445

(1) The majority of operating lease cost relates to retail stores and distribution centers and is classified within cost of sales. Operating lease cost for corporate offices is classified within selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses.

Schedule of cash flow information and non-cash activity related to operating leases

The following table presents supplemental disclosures of cash flow information related to operating leases:


	26 Weeks Ended
(In thousands)	August 3, 2019
Cash paid for operating lease liabilities (1)	$	165,882
Operating lease assets obtained in exchange for operating lease liabilities (non-cash)		190,824

(1)	Excludes $36,445 related to cash received for tenant incentives.

Schedule of maturities of non-cancellable operating lease liabilities

The following table presents maturities of operating lease liabilities as of August 3, 2019:


Fiscal year	(In thousands)
2019 (1)	$	113,470
2020		339,422
2021		326,124
2022		307,605
2023		271,830
2024 and thereafter		846,558
Total lease payments	$	2,205,009
Less: Imputed interest		(313,005)
Present value of operating lease liabilities	$	1,892,004

(1)	Excluding the 26 weeks ended August 3, 2019.

Operating lease payments exclude $219,045 of legally binding minimum lease payments for leases signed but not yet commenced.