Leases

9 Months Ended

Oct. 05, 2024

Leases [Abstract]

Leases

Leases

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 costs comprised of the following:

	Twelve Weeks Ended				Forty Weeks Ended
	October 5, 2024		October 7, 2023		October 5, 2024		October 7, 2023
Operating lease cost	$	121,322	$	116,082	$	396,333	$	381,326
Variable lease cost	33,888		33,666		119,237		108,896
Total lease cost	$	155,210	$	149,748	$	515,570	$	490,222

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

	Forty Weeks Ended
	October 5, 2024		October 7, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	400,551	$	386,668
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	387,266	$	312,808

During 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 $22.3 million and is included in selling, general and administrative expenses on the condensed consolidated statement of operations.