Commitments and Contingencies (Tables)

6 Months Ended

Jul. 01, 2021

Commitments and Contingencies Disclosure [Abstract]

The table below presents components of lease expense for operating leases.


		Thirteen Weeks Ended				Twenty-six Weeks Ended
in thousands	Classification	July 1, 2021		June 25, 2020 (3)		July 1, 2021		June 25, 2020 (3)
Fixed operating lease cost:	Selling and store operating	$	30,820	$	25,842	$	59,588	$	50,775
	Cost of sales	5,656		5,655		11,316		11,329
	Pre-opening	3,020		1,683		4,655		3,874
	General and administrative	1,030		1,041		2,059		2,059
Total fixed operating lease cost		$	40,526	$	34,221	$	77,618	$	68,037

Variable lease cost (1):	Selling and store operating	$	9,975	$	9,181	$	19,751	$	17,119
	Cost of sales	1,184		1,135		2,592		2,219
	Pre-opening	2		85		70		169
	General and administrative	(110)		45		(88)		72
Total variable lease cost		$	11,051	$	10,446	$	22,325	$	19,579

Sublease income	Cost of sales	(597)		(597)		(1,194)		(1,194)

Total operating lease cost (2)		$	50,980	$	44,070	$	98,749	$	86,422

(1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate.

(2) Excludes short-term lease costs, which were immaterial for the thirteen and twenty-six weeks ended July 1, 2021 and June 25, 2020.

(3) To conform to the current period presentation, the presentation of the components of operating lease expense for the thirteen weeks and twenty-six weeks ended June 25, 2020 has been updated within this table to provide disclosure of variable lease costs and additional information related to the classification of operating leases within the Condensed Consolidated Statements of Operations and Comprehensive Income.

Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases

Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of July 1, 2021 were as follows:


in thousands	Amount
Twenty-six weeks ending December 30, 2021	$	133,811
2022	156,328
2023	156,506
2024	149,008
2025	139,405
Thereafter	858,833
Total minimum lease payments (1) (2)	$	1,593,891
Less: amount of lease payments representing interest	430,325
Present value of future minimum lease payments	1,163,566
Less: current obligations under leases	86,110
Long-term lease obligations	$	1,077,456

(1) Future lease payments exclude approximately $25.2 million of legally binding minimum lease payments for operating leases signed but not yet commenced.

(2) Operating lease payments include $82.0 million related to options to extend lease terms that are reasonably certain of being exercised.