Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies (Tables)

v3.20.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Schedule of supplemental balance sheet information related to operating leases
The table below presents supplemental balance sheet information related to operating leases.
in thousands, except lease term and discount rate
Classification
 As of December 31, 2020 As of December 26, 2019
Assets
Building
Right-of-use assets
 $ 851,092  $ 808,989 
Equipment
Right-of-use assets
 6,865  7,322 
Land
Right-of-use assets
 56,708  2,378 
Software
Right-of-use assets
 1,660  3,567 
Total operating lease assets
916,325  822,256 
Liabilities
Current
Building
Current portion of lease liabilities
 88,287  67,500 
Equipment
Current portion of lease liabilities
 3,941  3,758 
Land
Current portion of lease liabilities
 440  170 
Software
Current portion of lease liabilities
 1,834  3,164 
Total current operating lease liabilities
94,502  74,592 
Noncurrent
Building
Lease liabilities
 873,098  837,510 
Equipment
Lease liabilities
 2,924  3,902 
Land
Lease liabilities
 65,103  2,357 
Software
Lease liabilities
 —  500 
Total noncurrent operating lease liabilities
941,125  844,269 
Total operating lease liabilities
$ 1,035,627  $ 918,861 
Weighted-average remaining lease term
11 years 10 years
Weighted-average discount rate
5.3% 5.3%
Schedule of components of lease expense
The table below presents components of lease expense for operating leases.
Fiscal Year Ended
in thousands Classification December 31, 2020 December 26, 2019 (3)
Fixed operating lease cost: Selling and store operating $ 105,207  $ 87,124 
Cost of sales 22,672  17,132 
Pre-opening 7,886  5,959 
General and administrative 4,118  2,272 
Total fixed operating lease cost $ 139,883  $ 112,487 
Variable lease cost (1): Selling and store operating $ 34,499  $ 28,894 
Cost of sales 4,860  3,570 
Pre-opening 657  151 
General and administrative 151  5 
Total variable lease cost $ 40,167  $ 32,620 
Sublease income Cost of sales (2,713) (2,414)
Operating lease right-of-use asset impairment General and administrative —  4,136 
Total operating lease cost (2) $ 177,337  $ 146,829 
(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 fiscal years ended December 31, 2020 and December 26, 2019.
(3)To conform to the current period presentation, the presentation of the components of operating lease expense for the fiscal year ended December 26, 2019 has been updated within this table to provide disclosure of variable lease costs and additional information related to the classification of operating lease costs within the Consolidated Statements of Operations and Comprehensive Income.
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 December 31, 2020, were:
in thousands
Amount
2021 $ 145,813 
2022 141,815 
2023 136,289 
2024 133,866 
2025 125,790 
Thereafter
 713,557 
Total minimum lease payments (1) (2) 1,397,130 
Less: amount of lease payments representing interest
 361,503 
Present value of future minimum lease payments
 1,035,627 
Less: current obligations under leases
 94,502 
Long-term lease obligations
 $ 941,125 
(1)Future lease payments exclude approximately $132.9 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2)Operating lease payments include $59.3 million related to options to extend lease terms that are reasonably certain of being exercised.