| Schedule of Components of Lease Expense |
The table below presents components of lease expense for operating leases.
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Thirteen Weeks Ended |
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Thirty-nine Weeks Ended |
| in thousands |
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Classification |
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September 29, 2022 |
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September 30, 2021 |
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September 29, 2022 |
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September 30, 2021 |
| Fixed operating lease cost: |
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Selling and store operating |
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$ |
33,991 |
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$ |
31,940 |
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$ |
103,035 |
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$ |
91,528 |
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Cost of sales |
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6,354 |
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5,668 |
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19,178 |
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16,984 |
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Pre-opening |
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2,558 |
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3,272 |
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7,542 |
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7,927 |
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General and administrative |
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1,136 |
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1,029 |
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3,407 |
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3,088 |
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| Total fixed operating lease cost |
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$ |
44,039 |
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$ |
41,909 |
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$ |
133,162 |
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$ |
119,527 |
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| Variable lease cost (1): |
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Selling and store operating |
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$ |
13,524 |
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$ |
10,605 |
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$ |
38,450 |
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$ |
30,356 |
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Cost of sales |
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1,231 |
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1,101 |
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3,886 |
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3,693 |
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Pre-opening |
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114 |
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13 |
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354 |
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83 |
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General and administrative |
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194 |
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78 |
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598 |
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(10) |
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| Total variable lease cost |
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$ |
15,063 |
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$ |
11,797 |
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$ |
43,288 |
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$ |
34,122 |
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| Sublease income |
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Cost of sales |
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(681) |
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(597) |
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(2,041) |
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(1,791) |
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| Total operating lease cost (2) |
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$ |
58,421 |
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$ |
53,109 |
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$ |
174,409 |
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$ |
151,858 |
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(1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate.
(2) Excludes short-term lease costs, which were immaterial for the thirty-nine weeks ended September 29, 2022 and September 30, 2021.
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| Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases |
Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of September 29, 2022 were as follows:
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| in thousands |
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Amount |
| Thirteen weeks ending December 29, 2022 |
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$ |
32,202 |
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| 2023 |
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183,545 |
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| 2024 |
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180,086 |
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| 2025 |
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167,940 |
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| 2026 |
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157,889 |
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| Thereafter |
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1,039,871 |
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| Total minimum lease payments (1) (2) |
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1,761,533 |
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| Less: amount of lease payments representing interest |
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476,862 |
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| Present value of future minimum lease payments |
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1,284,671 |
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| Less: current obligations under leases |
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107,258 |
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| Long-term lease obligations |
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$ |
1,177,413 |
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(1) Future lease payments exclude approximately $237.4 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2) Operating lease payments include $146.8 million related to options to extend lease terms that are reasonably certain of being exercised.
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