Leases

4 Months Ended

Apr. 20, 2024

Substantially all of the Company’s leases are for facilities and vehicles. The initial term for facilities is typically five to ten years, with renewal options typically at five-year intervals, with the exercise of lease renewal options at the Company’s sole discretion. The Company’s vehicle and equipment lease terms are typically three to six years. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Total lease cost is included in cost of sales and SG&A in the accompanying Condensed Consolidated Statements of Operations and is recorded net of immaterial sublease income. Total lease cost comprised of the following:


	Sixteen Weeks Ended
	April 20, 2024		April 22, 2023
Operating lease cost	$	181,591	$	173,659
Variable lease cost	58,660		51,346
Total lease cost	$	240,251	$	225,005

Other information relating to the Company’s lease liabilities is as follows:


	Sixteen Weeks Ended
	April 20, 2024		April 22, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	153,863	$	153,363
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	213,176	$	181,167