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 total selling, general and administrative expenses in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. Total lease costs are comprised of the following:


	Sixteen Weeks Ended
	April 19, 2025		April 20, 2024
Operating lease cost	$	168	$	157
Variable lease cost	51		48
Total lease cost	$	219	$	205

During the first quarter of fiscal 2025, the Company recorded $29 million primarily related to accelerated amortization on leases the Company expects to exit before the end of the contractual term, and non-cash asset impairment net of gains on lease modifications and terminations. These amounts are recorded in restructuring and related expenses within the accompanying condensed consolidated statements of operations. See Note 3. Restructuring, of the notes to the condensed consolidated financial statements included herein.


	Sixteen Weeks Ended
	April 19, 2025		April 20, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	179	$	133
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	91	$	132

During the first quarter of 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 $21 million and is included in selling, general and administrative expenses on the condensed consolidated statement of operations for the sixteen weeks ended April 20, 2024.