| 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 27, 2024 |
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June 29, 2023 |
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June 27, 2024 |
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June 29, 2023 |
| Fixed operating lease cost: |
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Selling and store operating |
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$ |
43,840 |
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$ |
38,529 |
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$ |
86,575 |
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$ |
76,673 |
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Cost of sales |
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6,461 |
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5,213 |
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12,913 |
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11,471 |
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Pre-opening |
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4,151 |
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3,906 |
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7,214 |
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6,972 |
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General and administrative |
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1,031 |
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1,030 |
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2,060 |
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2,102 |
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| Total fixed operating lease cost |
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$ |
55,483 |
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$ |
48,678 |
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$ |
108,762 |
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$ |
97,218 |
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| Variable lease cost (1): |
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Selling and store operating |
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$ |
17,999 |
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$ |
15,282 |
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$ |
36,091 |
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$ |
29,768 |
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Cost of sales |
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1,067 |
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1,039 |
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2,350 |
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2,158 |
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Pre-opening |
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162 |
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12 |
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335 |
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143 |
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General and administrative |
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578 |
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316 |
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1,157 |
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619 |
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| Total variable lease cost |
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$ |
19,806 |
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$ |
16,649 |
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$ |
39,933 |
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$ |
32,688 |
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| Sublease income |
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Cost of sales |
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(680) |
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(681) |
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(1,362) |
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(1,360) |
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| Total operating lease cost (2) |
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$ |
74,609 |
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$ |
64,646 |
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$ |
147,333 |
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$ |
128,546 |
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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 27, 2024 and June 29, 2023.
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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 27, 2024 were as follows:
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| in thousands |
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Amount |
| Twenty-six weeks ending December 26, 2024 |
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$ |
100,824 |
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| 2025 |
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219,589 |
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| 2026 |
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206,727 |
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| 2027 |
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195,791 |
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| 2028 |
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175,773 |
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| Thereafter |
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1,268,792 |
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| Total minimum lease payments (1) (2) |
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2,167,496 |
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| Less: amount of lease payments representing interest |
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672,586 |
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| Present value of future minimum lease payments |
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1,494,910 |
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| Less: current obligations under leases |
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132,770 |
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| Long-term lease obligations |
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$ |
1,362,140 |
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(1) Future lease payments exclude approximately $451.1 million of legally binding minimum lease payments for operating leases signed but not yet commenced.
(2) Operating lease payments include $255.0 million related to options to extend lease terms that are reasonably certain of being exercised.
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