The Company leases certain retail store and supply chain center locations, vehicles, equipment and its corporate headquarters with expiration dates through 2045.

The components of operating and finance lease cost for 2023, 2022 and 2021 were as follows:


	2023		2022		2021
Operating lease cost	$	47,579	$	47,039	$	44,913

Finance lease cost:
Amortization of right-of-use assets		5,545		5,235		4,373
Interest on lease liabilities		4,340		4,369		4,233
Total finance lease cost	$	9,885	$	9,604	$	8,606

Rent expense totaled $85.6 million, $79.6 million and $78.6 million in 2023, 2022 and 2021, respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Rent expense for certain short-term supply chain center tractor and trailer rentals was $5.4 million, $7.0 million and $8.0 million in 2023, 2022 and 2021, respectively. Variable rent expense and rent expense for other short-term leases were immaterial for 2023, 2022 and 2021.

Supplemental balance sheet information related to the Company’s finance leases as of December 31, 2023 and January 1, 2023 was as follows:


	December 31, 2023			January 1, 2023
Land and buildings	$	83,969		$	83,902
Equipment		4,284			1,606
Finance lease assets		88,253			85,508
Accumulated depreciation and amortization		(24,159	)		(19,405	)
Finance lease assets, net	$	64,094		$	66,103

Current portion of long-term debt	$	4,778		$	3,313
Long-term debt, less current portion		68,704			70,886
Total principal payable on finance leases	$	73,482		$	74,199

As of December 31, 2023 and January 1, 2023, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows:


	2023						2022
	Operating			Finance			Operating			Finance
	Leases			Leases			Leases			Leases
Weighted average remaining lease term	7 years			13 years			7 years			14 years
Weighted average discount rate		4.3	%		6.1	%		3.9	%		6.0	%

Supplemental cash flow information related to leases for 2023, 2022 and 2021 was as follows:


	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	46,936	$	45,082	$	44,176
Operating cash flows from finance leases		4,340		4,369		4,233
Financing cash flows from finance leases		4,184		4,176		3,212
Cash paid for amounts included in the measurement of financing obligation from sale leaseback:
Operating cash flows from sale leaseback		201		—		—
Financing cash flows from sale leaseback		21		—		—
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		34,313		64,660		29,549
Finance leases		3,842		478		18,991

Maturities of lease liabilities as of December 31, 2023 were as follows:


	Operating			Finance
	Leases			Leases
2024	$	49,267		$	8,954
2025		42,647			8,937
2026		41,130			9,555
2027		33,239			8,344
2028		26,278			7,214
Thereafter		64,997			60,946
Total future minimum rental commitments		257,558			103,950
Less, amounts representing interest		(38,680	)		(30,468	)
Total lease liabilities	$	218,878		$	73,482

In the fourth quarter of 2023, a subsidiary of the Company entered into a purchase and sale agreement with a developer to sell one of the Company’s owned supply chain center buildings and the associated land for $14.9 million. Concurrently, a separate subsidiary of the Company entered into a lease agreement with the developer to construct a new supply chain center which includes both the existing building as well as an adjoined new construction on the adjacent properties owned by the developer.

The leaseback of the Company’s building on a standalone basis for the construction period plus the 20-year term using the discount rate implicit in the lease resulted in a finance lease classification, and therefore, the transaction was accounted for as a failed sale leaseback. The Company retained the existing land and buildings on its consolidated balance sheet which are included in property, plant and equipment and the Company continues to depreciate the building as if it owned it. The $14.9 million cash proceeds from the transaction were recorded as a financing obligation which is classified as long-term debt in the Company’s consolidated balance sheet and will be amortized into principal and interest expense over the term of the lease agreement. The $119.5 million of future minimum rent payments associated with the new construction on a standalone basis is included in the disclosure for material leases not yet commenced, below.

As of December 31, 2023, in addition to the lease for the new supply chain construction on a standalone basis discussed above, the Company also had additional leases for certain supply chain and U.S. Company-owned store vehicles that had not yet commenced. The total estimated future minimum rental commitments for all of these arrangements is $146.3 million. These leases are expected to commence in 2024 and 2025 with lease terms of up to 20 years. These undiscounted amounts are not included in the table above.

The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees was $18.5 million and $24.5 million as of December 31, 2023 and January 1, 2023, respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues or expenses, capital expenditures or liquidity.