Substantially all of the Company’s leases are for facilities, vehicles and equipment. 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 the following:


	Twelve Weeks Ended				Twenty-Eight Weeks Ended
	July 13, 2024		July 15, 2023		July 13, 2024		July 15, 2023
Operating lease cost	$	136,234	$	130,931	$	317,824	$	304,590
Variable lease cost	44,871		41,087		103,532		92,433
Total lease cost	$	181,105	$	172,018	$	421,356	$	397,023


	Twenty-Eight Weeks Ended
	July 13, 2024		July 15, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	307,345	$	298,175
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	286,875	$	271,182

During first quarter 2024, the Company entered into a sale-leaseback transaction where the Company sold a building and land and entered into a three-year lease of the property upon the sale. This transaction resulted in a gain of $22.3 million and is included in selling, general and administrative expenses on the condensed consolidated statement of operations.