| 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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Twenty-six Weeks Ended |
| in thousands |
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Classification |
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June 30, 2022 |
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July 1, 2021 |
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June 30, 2022 |
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July 1, 2021 |
| Fixed operating lease cost: |
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Selling and store operating |
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$ |
35,584 |
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$ |
30,820 |
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$ |
69,044 |
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$ |
59,588 |
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Cost of sales |
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6,323 |
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5,656 |
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12,824 |
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11,316 |
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Pre-opening |
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2,631 |
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3,020 |
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4,984 |
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4,655 |
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General and administrative |
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1,130 |
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1,030 |
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2,271 |
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2,059 |
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| Total fixed operating lease cost |
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$ |
45,668 |
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$ |
40,526 |
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$ |
89,123 |
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$ |
77,618 |
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| Variable lease cost (1): |
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Selling and store operating |
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$ |
12,703 |
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$ |
9,975 |
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$ |
24,926 |
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$ |
19,751 |
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Cost of sales |
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1,236 |
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1,184 |
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2,655 |
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2,592 |
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Pre-opening |
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73 |
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2 |
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240 |
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70 |
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General and administrative |
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178 |
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(110) |
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404 |
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(88) |
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| Total variable lease cost |
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$ |
14,190 |
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$ |
11,051 |
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$ |
28,225 |
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$ |
22,325 |
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| Sublease income |
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Cost of sales |
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(680) |
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(597) |
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(1,360) |
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(1,194) |
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| Total operating lease cost (2) |
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$ |
59,178 |
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$ |
50,980 |
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$ |
115,988 |
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$ |
98,749 |
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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 twenty-six weeks ended June 30, 2022 and July 1, 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 June 30, 2022 were as follows:
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| in thousands |
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Amount |
| Twenty-six weeks ending December 29, 2022 |
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$ |
83,803 |
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| 2023 |
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186,105 |
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| 2024 |
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177,128 |
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| 2025 |
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165,580 |
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| 2026 |
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156,229 |
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| Thereafter |
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1,013,830 |
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| Total minimum lease payments (1) (2) |
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1,782,675 |
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| Less: amount of lease payments representing interest |
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478,465 |
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| Present value of future minimum lease payments |
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1,304,210 |
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| Less: current obligations under leases |
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112,987 |
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| Long-term lease obligations |
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$ |
1,191,223 |
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(1) Future lease payments exclude approximately $220.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2) Operating lease payments include $138.3 million related to options to extend lease terms that are reasonably certain of being exercised.
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