| 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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Thirty-nine Weeks Ended |
| in thousands |
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Classification |
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September 26, 2024 |
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September 28, 2023 |
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September 26, 2024 |
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September 28, 2023 |
| Fixed operating lease cost: |
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Selling and store operating |
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$ |
44,648 |
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$ |
39,575 |
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$ |
131,223 |
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$ |
116,248 |
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Cost of sales |
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6,551 |
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6,385 |
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19,464 |
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17,856 |
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Pre-opening |
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3,988 |
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4,244 |
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11,202 |
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11,216 |
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General and administrative |
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1,029 |
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1,029 |
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3,089 |
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3,131 |
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| Total fixed operating lease cost |
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$ |
56,216 |
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$ |
51,233 |
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$ |
164,978 |
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$ |
148,451 |
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| Variable lease cost (1): |
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Selling and store operating |
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$ |
17,170 |
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$ |
14,601 |
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$ |
53,261 |
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$ |
44,369 |
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Cost of sales |
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764 |
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1,149 |
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3,114 |
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3,307 |
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Pre-opening |
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108 |
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185 |
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443 |
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328 |
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General and administrative |
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718 |
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408 |
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1,875 |
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1,027 |
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| Total variable lease cost |
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$ |
18,760 |
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$ |
16,343 |
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$ |
58,693 |
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$ |
49,031 |
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| Sublease income |
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Cost of sales |
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(691) |
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(681) |
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(2,053) |
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(2,041) |
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| Total operating lease cost (2) |
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$ |
74,285 |
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$ |
66,895 |
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$ |
221,618 |
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$ |
195,441 |
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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 thirty-nine weeks ended September 26, 2024 and September 28, 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 September 26, 2024 were as follows:
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| in thousands |
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Amount |
| Thirteen weeks ending December 26, 2024 |
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$ |
47,189 |
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| 2025 |
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225,100 |
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| 2026 |
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212,896 |
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| 2027 |
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201,650 |
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| 2028 |
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181,053 |
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| Thereafter |
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1,302,753 |
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| Total minimum lease payments (1) (2) |
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2,170,641 |
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| Less: amount of lease payments representing interest |
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667,498 |
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| Present value of future minimum lease payments |
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1,503,143 |
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| Less: current obligations under leases |
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134,629 |
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| Long-term lease obligations |
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$ |
1,368,514 |
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(1) Future lease payments exclude approximately $449.9 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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