Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies (Tables)

v3.22.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 29, 2022
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 29, 2022 As of December 30, 2021
Assets
Building Right-of-use assets $ 989,955  $ 972,962 
Land Right-of-use assets 199,035  107,764 
Equipment Right-of-use assets 16,646  14,127 
Software Right-of-use assets —  8,897 
Total operating lease assets $ 1,205,636  $ 1,103,750 
Liabilities
Current
Building Current portion of lease liabilities 95,216  92,909 
Land Current portion of lease liabilities 1,922  1,385 
Equipment Current portion of lease liabilities 8,555  6,842 
Software Current portion of lease liabilities —  3,466 
Total current operating lease liabilities 105,693  104,602 
Noncurrent
Building Lease liabilities 998,883  989,712 
Land Lease liabilities 220,570  120,174 
Equipment Lease liabilities 8,054  7,285 
Software Lease liabilities —  3,819 
Total noncurrent operating lease liabilities 1,227,507  1,120,990 
Total operating lease liabilities $ 1,333,200  $ 1,225,592 
Weighted-average remaining lease term 12 years 11 years
Weighted-average discount rate 5.4% 5.1%
Schedule of Components of Lease Expense
The table below presents components of lease expense for operating leases.
Fiscal Year Ended
in thousands Classification December 29,
2022
December 30,
2021
December 31,
2020
Fixed operating lease cost: Selling and store operating $ 139,603  $ 123,882  $ 105,207 
Cost of sales 25,465  24,170  22,672 
Pre-opening 9,971  10,127  7,886 
General and administrative 4,622  4,359  4,118 
Total fixed operating lease cost $ 179,661  $ 162,538  $ 139,883 
Variable lease cost (1):
Selling and store operating $ 49,605  $ 42,093  $ 34,499 
Cost of sales 3,894  5,506  4,860 
Pre-opening 666  274  657 
General and administrative 787  310  151 
Total variable lease cost $ 54,952  $ 48,183  $ 40,167 
Sublease income Cost of sales (2,722) (2,694) (2,713)
Total operating lease cost (2)
$ 231,891  $ 208,027  $ 177,337 
(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 29, 2022, December 30, 2021, and December 31, 2020.
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 29, 2022 were as follows:
in thousands
Amount
2023 $ 170,669 
2024 189,116 
2025 177,156 
2026 166,350 
2027 158,809 
Thereafter
1,020,281 
Total minimum lease payments (1) (2)
1,882,381 
Less: amount of lease payments representing interest
549,181 
Present value of future minimum lease payments
1,333,200 
Less: current obligations under leases
105,693 
Long-term lease obligations
$ 1,227,507 
(1)Future lease payments exclude approximately $262.7 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2)Operating lease payments include $184.2 million related to options to extend lease terms that are reasonably certain of being exercised.