| 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 29, 2023 |
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June 30, 2022 |
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June 29, 2023 |
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June 30, 2022 |
| Fixed operating lease cost: |
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Selling and store operating |
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$ |
38,529 |
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$ |
35,584 |
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$ |
76,673 |
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$ |
69,044 |
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Cost of sales |
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5,213 |
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6,323 |
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11,471 |
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12,824 |
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Pre-opening |
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3,906 |
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2,631 |
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6,972 |
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4,984 |
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General and administrative |
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1,030 |
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1,130 |
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2,102 |
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2,271 |
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| Total fixed operating lease cost |
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$ |
48,678 |
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$ |
45,668 |
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$ |
97,218 |
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$ |
89,123 |
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| Variable lease cost (1): |
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Selling and store operating |
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$ |
15,282 |
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$ |
12,703 |
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$ |
29,768 |
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$ |
24,926 |
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Cost of sales |
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1,039 |
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1,236 |
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2,158 |
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2,655 |
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Pre-opening |
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12 |
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73 |
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143 |
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240 |
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General and administrative |
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316 |
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178 |
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619 |
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404 |
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| Total variable lease cost |
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$ |
16,649 |
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$ |
14,190 |
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$ |
32,688 |
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$ |
28,225 |
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| Sublease income |
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Cost of sales |
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(681) |
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(680) |
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(1,360) |
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(1,360) |
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| Total operating lease cost (2) |
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$ |
64,646 |
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$ |
59,178 |
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$ |
128,546 |
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$ |
115,988 |
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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 twenty-six weeks ended June 29, 2023 and June 30, 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 June 29, 2023 were as follows:
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| in thousands |
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Amount |
| Twenty-six weeks ending December 28, 2023 |
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$ |
88,570 |
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| 2024 |
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202,730 |
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| 2025 |
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191,186 |
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| 2026 |
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179,308 |
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| 2027 |
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171,372 |
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| Thereafter |
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1,161,317 |
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| Total minimum lease payments (1) (2) |
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1,994,483 |
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| Less: amount of lease payments representing interest |
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598,596 |
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| Present value of future minimum lease payments |
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1,395,887 |
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| Less: current obligations under leases |
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118,960 |
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| Long-term lease obligations |
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$ |
1,276,927 |
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(1) Future lease payments exclude approximately $415.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2) Operating lease payments include $216.2 million related to options to extend lease terms that are reasonably certain of being exercised.
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