| 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 28, 2023 |
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September 29, 2022 |
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September 28, 2023 |
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September 29, 2022 |
| Fixed operating lease cost: |
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Selling and store operating |
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$ |
39,575 |
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$ |
33,991 |
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$ |
116,248 |
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$ |
103,035 |
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Cost of sales |
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6,385 |
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6,354 |
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17,856 |
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19,178 |
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Pre-opening |
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4,244 |
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2,558 |
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11,216 |
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7,542 |
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General and administrative |
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1,029 |
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1,136 |
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3,131 |
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3,407 |
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| Total fixed operating lease cost |
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$ |
51,233 |
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$ |
44,039 |
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$ |
148,451 |
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$ |
133,162 |
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| Variable lease cost (1): |
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Selling and store operating |
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$ |
14,601 |
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$ |
13,524 |
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$ |
44,369 |
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$ |
38,450 |
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Cost of sales |
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1,149 |
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1,231 |
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3,307 |
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3,886 |
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Pre-opening |
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185 |
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114 |
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328 |
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354 |
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General and administrative |
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408 |
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194 |
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1,027 |
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598 |
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| Total variable lease cost |
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$ |
16,343 |
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$ |
15,063 |
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$ |
49,031 |
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$ |
43,288 |
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| Sublease income |
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Cost of sales |
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(681) |
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(681) |
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(2,041) |
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(2,041) |
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| Total operating lease cost (2) |
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$ |
66,895 |
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$ |
58,421 |
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$ |
195,441 |
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$ |
174,409 |
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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 thirteen and thirty-nine weeks ended September 28, 2023 and September 29, 2022.
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| Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases |
Future minimum lease payments under non-cancelable operating leases as of September 28, 2023 were as follows:
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| in thousands |
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Amount |
| Thirteen weeks ending December 28, 2023 |
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$ |
42,334 |
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| 2024 |
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210,612 |
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| 2025 |
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200,864 |
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| 2026 |
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188,072 |
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| 2027 |
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178,914 |
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| Thereafter |
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1,277,883 |
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| Total minimum lease payments (1) (2) |
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2,098,679 |
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| Less: amount of lease payments representing interest |
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648,105 |
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| Present value of future minimum lease payments |
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1,450,574 |
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| Less: current obligations under leases |
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125,348 |
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| Long-term lease obligations |
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$ |
1,325,226 |
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(1) Future lease payments exclude approximately $477.0 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2) Operating lease payments include $242.3 million related to options to extend lease terms that are reasonably certain of being exercised.
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