| Schedule of Supplemental Balance Sheet Information Related to Operating Leases |
The table below presents supplemental balance sheet information related to operating leases.
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in thousands, except lease term and discount rate |
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Classification |
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As of December 30, 2021 |
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As of December 31, 2020 |
| Assets |
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| Building |
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Right-of-use assets |
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$ |
972,962 |
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$ |
851,092 |
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| Land |
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Right-of-use assets |
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107,764 |
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56,708 |
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| Equipment |
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Right-of-use assets |
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14,127 |
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6,865 |
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| Software |
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Right-of-use assets |
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8,897 |
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1,660 |
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| Total operating lease assets |
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1,103,750 |
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916,325 |
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| Liabilities |
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| Current |
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| Building |
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Current portion of lease liabilities |
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92,909 |
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88,287 |
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| Land |
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Current portion of lease liabilities |
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1,385 |
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440 |
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| Equipment |
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Current portion of lease liabilities |
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6,842 |
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3,941 |
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| Software |
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Current portion of lease liabilities |
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3,466 |
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1,834 |
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| Total current operating lease liabilities |
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104,602 |
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94,502 |
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| Noncurrent |
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| Building |
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Lease liabilities |
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989,712 |
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873,098 |
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| Land |
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Lease liabilities |
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120,174 |
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65,103 |
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| Equipment |
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Lease liabilities |
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7,285 |
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2,924 |
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| Software |
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Lease liabilities |
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3,819 |
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— |
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| Total noncurrent operating lease liabilities |
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1,120,990 |
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941,125 |
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| Total operating lease liabilities |
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$ |
1,225,592 |
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$ |
1,035,627 |
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| Weighted-average remaining lease term |
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11 years |
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11 years |
| Weighted-average discount rate |
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5.1% |
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5.3% |
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| Schedule of Components of Lease Expense |
The table below presents components of lease expense for operating leases.
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Fiscal Year Ended |
| in thousands |
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Classification |
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December 30,
2021 |
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December 31,
2020 |
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December 26,
2019 |
| Fixed operating lease cost: |
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Selling and store operating |
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$ |
123,882 |
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$ |
105,207 |
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$ |
87,124 |
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Cost of sales |
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24,170 |
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22,672 |
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17,132 |
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Pre-opening |
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10,127 |
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7,886 |
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5,959 |
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General and administrative |
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4,359 |
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4,118 |
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2,272 |
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| Total fixed operating lease cost |
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$ |
162,538 |
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$ |
139,883 |
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$ |
112,487 |
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| Variable lease cost (1): |
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Selling and store operating |
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$ |
42,093 |
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$ |
34,499 |
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$ |
28,894 |
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Cost of sales |
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5,506 |
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4,860 |
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3,570 |
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Pre-opening |
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274 |
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657 |
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151 |
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General and administrative |
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310 |
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151 |
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5 |
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| Total variable lease cost |
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$ |
48,183 |
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$ |
40,167 |
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$ |
32,620 |
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| Sublease income |
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Cost of sales |
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(2,694) |
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(2,713) |
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(2,414) |
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| Operating lease right-of-use asset impairment |
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General and administrative |
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— |
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— |
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4,136 |
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| Total operating lease cost (2) |
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$ |
208,027 |
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$ |
177,337 |
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$ |
146,829 |
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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 fiscal years ended December 30, 2021, December 31, 2020, and December 26, 2019.
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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 December 30, 2021 were as follows:
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in thousands |
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Amount |
| 2022 |
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$ |
163,924 |
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| 2023 |
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170,295 |
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| 2024 |
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161,516 |
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| 2025 |
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151,944 |
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| 2026 |
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143,693 |
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Thereafter |
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866,242 |
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| Total minimum lease payments (1) (2) |
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1,657,614 |
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Less: amount of lease payments representing interest |
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432,022 |
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Present value of future minimum lease payments |
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1,225,592 |
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Less: current obligations under leases |
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104,602 |
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Long-term lease obligations |
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$ |
1,120,990 |
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(1)Future lease payments exclude approximately $72.6 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2)Operating lease payments include $108.5 million related to options to extend lease terms that are reasonably certain of being exercised.
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