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Leases (Tables)
 12 Months Ended
Dec. 30, 2023
Leases [Abstract]  
Schedule of Lease Type and Classification on Balance Sheet
Information related to our leases is presented below:
In thousandsAs of
December 30, 2023		As of
December 31, 2022
TypeClassification
ASSETS
Finance
Property and equipment, net (a)
$10,774 $14,962 
Operating
Right of use assets (b)
406,579 382,825 
Total leased assets$417,353 $397,787 
LIABILITIES
Current Liabilities:
FinanceCurrent maturities of long-term debt and finance lease obligations$2,980 $4,137 
Operating
Current operating lease obligations (c)
85,392 77,186 
Other noncurrent liabilities:
FinanceLong-term debt and finance lease obligations, less current portion and debt discount13,087 17,157 
OperatingNoncurrent operating lease obligations376,814 358,110 
Total lease liabilities$478,273 $456,590 
As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date.
_________
(a) Finance lease assets are recorded net of accumulated amortization of $25.4 million and $21.3 million as of December 30, 2023 and December 31, 2022, respectively.
(b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022.
(c) Current operating lease liabilities are measured net of TIA receivables of $4.6 million and $6.7 million as of December 30, 2023 and December 31, 2022, respectively.
Schedule of Lease Cost
In thousandsFiscal Year 2023Fiscal Year 2022Fiscal Year 2021
Operating lease cost
Fixed lease cost (a)
$99,334 $90,801 $84,019 
Variable lease cost (b)
36,388 33,143 30,643 
Sublease income(c)
(3,684)(3,629)(3,557)
Finance lease cost
Amortization of finance lease assets3,061 4,145 4,461 
Interest on finance lease liabilities1,675 2,342 2,923 
Net lease cost$136,774 $126,802 $118,489 
(a)Includes short-term leases, which are immaterial.
(b)Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores.
(c)Income from sub-leasing of stores includes rental income from operating lease properties to independent optometrists.
Schedule of Lease Terms and Discount Rate
Lease Term and Discount RateAs of
December 30, 2023		As of
December 31, 2022
Weighted average remaining lease term (months)
Operating leases7374
Finance leases5865
Weighted average discount rate (a)
Operating leases4.7 %4.4 %
Finance leases (b)
10.4 %10.8 %
(a)The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) Term SOFR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five-year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period.
(b)The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations.
Schedule of Operating Lease Cash Flows
In thousandsFiscal Year 2023Fiscal Year 2022Fiscal Year 2021
Other Information
Operating cash outflows - operating leases$106,168 $88,867 $89,324 
Right of use assets acquired under operating leases$111,792 $110,387 $91,451 
Schedule of Maturity for Operating Lease Liabilities
The following table summarizes the maturity of our lease liabilities as of December 30, 2023:
In thousands
Operating Leases (a)
Finance Leases (b)
Fiscal Year
2024$96,270 $4,129 
2025108,628 4,625 
202687,129 4,252 
202772,277 3,379 
202852,762 1,973 
Thereafter118,181 1,091 
Total lease liabilities535,247 19,449 
Less: Interest73,041 3,382 
Present value of lease liabilities(c)
$462,206 $16,067 
_________
(a) Operating lease payments include $33.3 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $35.3 million of legally binding minimum lease payments for leases signed but not yet commenced.
Schedule of Maturity for Finance Lease Liabilities
The following table summarizes the maturity of our lease liabilities as of December 30, 2023:
In thousands
Operating Leases (a)
Finance Leases (b)
Fiscal Year
2024$96,270 $4,129 
2025108,628 4,625 
202687,129 4,252 
202772,277 3,379 
202852,762 1,973 
Thereafter118,181 1,091 
Total lease liabilities535,247 19,449 
Less: Interest73,041 3,382 
Present value of lease liabilities(c)
$462,206 $16,067 
_________
(a) Operating lease payments include $33.3 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $35.3 million of legally binding minimum lease payments for leases signed but not yet commenced.