| Leases |
Leases The Company's finance and operating lease assets and liabilities as of October 2, 2022 and December 26, 2021 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| October 2, 2022 |
|
Finance(1)
|
|
Operating(2)
|
|
|
Lease assets, net(3)
|
|
$ |
7,233 |
|
|
$ |
375,747 |
|
|
|
|
|
|
|
|
|
|
| Current portion of lease obligations |
|
1,015 |
|
|
47,726 |
|
|
|
| Long-term portion of lease obligations |
|
8,630 |
|
|
401,274 |
|
|
|
| Total |
|
$ |
9,645 |
|
|
$ |
449,000 |
|
|
|
|
|
|
|
|
|
|
| December 26, 2021 |
|
Finance(1)
|
|
Operating(2)
|
|
|
Lease assets, net(3)
|
|
$ |
9,664 |
|
|
$ |
400,825 |
|
|
|
|
|
|
|
|
|
|
| Current portion of lease obligations |
|
1,194 |
|
|
48,842 |
|
|
|
| Long-term portion of lease obligations |
|
10,765 |
|
|
435,136 |
|
|
|
| Total |
|
$ |
11,959 |
|
|
$ |
483,978 |
|
|
|
(1) Finance lease assets and obligations are included in Other assets, net, Accrued liabilities and other current liabilities, and Other non-current liabilities on our October 2, 2022 and December 26, 2021 Condensed Consolidated Balance Sheets.
(2) Operating lease assets and obligations are included in Operating lease assets, net, Current portion of operating lease liabilities, and Long-term portion of operating lease liabilities on our October 2, 2022 and December 26, 2021 Condensed Consolidated Balance Sheets.
(3) The Lease assets, net caption includes the right of use assets associated with the Company's Finance and Operating leases, net of the associated amortization of these right of use assets.
The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in Occupancy on our Condensed Consolidated Statement of Operations and Comprehensive Loss as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Weeks Ended |
|
Forty Weeks Ended |
|
|
October 2, 2022 |
|
October 3, 2021 |
|
October 2, 2022 |
|
October 3, 2021 |
| Operating lease cost |
|
$ |
15,793 |
|
|
$ |
16,061 |
|
|
$ |
53,904 |
|
|
$ |
53,765 |
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
| Amortization of right of use assets |
|
261 |
|
|
197 |
|
|
841 |
|
|
657 |
|
| Interest on lease liabilities |
|
111 |
|
|
131 |
|
|
408 |
|
|
407 |
|
| Total finance lease cost |
|
$ |
372 |
|
|
$ |
328 |
|
|
$ |
1,249 |
|
|
$ |
1,064 |
|
| Variable lease cost |
|
4,130 |
|
|
4,496 |
|
|
15,136 |
|
|
15,271 |
|
| Total |
|
$ |
20,295 |
|
|
$ |
20,885 |
|
|
$ |
70,289 |
|
|
$ |
70,100 |
|
Maturities of our lease liabilities as of October 2, 2022 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance Leases |
|
Operating Leases |
|
|
| Remainder of 2022 |
$ |
260 |
|
|
$ |
13,829 |
|
|
|
| 2023 |
1,386 |
|
|
76,978 |
|
|
|
| 2024 |
1,479 |
|
|
76,047 |
|
|
|
| 2025 |
1,189 |
|
|
71,921 |
|
|
|
| 2026 |
1,245 |
|
|
66,078 |
|
|
|
| Thereafter |
6,454 |
|
|
323,647 |
|
|
|
| Total future lease payments |
$ |
12,013 |
|
|
$ |
628,500 |
|
|
|
| Less imputed interest |
2,368 |
|
|
179,500 |
|
|
|
| Total lease liability |
$ |
9,645 |
|
|
$ |
449,000 |
|
|
|
Supplemental cash flow and other information related to leases is as follows (in thousands, except other information):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forty Weeks Ended |
|
|
|
|
October 2, 2022 |
|
October 3, 2021 |
|
|
| Cash flows from operating activities |
|
|
|
|
|
|
| Cash paid related to lease liabilities |
|
|
|
|
|
|
| Operating leases |
|
$ |
65,943 |
|
|
$ |
68,036 |
|
|
|
| Finance leases |
|
408 |
|
|
406 |
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
| Cash paid related to lease liabilities |
|
|
|
|
|
|
| Finance leases |
|
1,048 |
|
|
1,447 |
|
|
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
$ |
67,399 |
|
|
$ |
69,889 |
|
|
|
|
|
|
|
|
|
|
| Right of use assets obtained in exchange for operating lease obligations |
|
$ |
11,604 |
|
|
$ |
27,483 |
|
|
|
| Right of use assets obtained in exchange for finance lease obligations |
|
$ |
541 |
|
|
$ |
988 |
|
|
|
|
|
|
|
|
|
|
| Other information related to operating leases as follows: |
|
|
|
|
|
|
| Weighted average remaining lease term (years) |
|
9.21 |
|
9.86 |
|
|
| Weighted average discount rate |
|
7.24 |
% |
|
7.01 |
% |
|
|
|
|
|
|
|
|
|
| Other information related to finance leases as follows: |
|
|
|
|
|
|
| Weighted average remaining lease term (years) |
|
10.49 |
|
11.04 |
|
|
| Weighted average discount rate |
|
4.89 |
% |
|
4.56 |
% |
|
|
|