Leases

12 Months Ended

Jan. 01, 2023

The Company leases property, software, automobiles, trucks and trailers, pursuant to operating lease agreements. The Company also leases furniture, fixtures and equipment under finance leases. The leases have varying remaining lease terms with leases expiring through 2092, some of which include options to extend the leases.

The components of leases expense were as follows (in millions):


	Fiscal Years Ended
	January 1, 2023		January 2, 2022		December 27, 2020
Operating lease cost	$	178.3	$	153.9	$	136.7
Finance lease cost:
Amortization of right-of-use assets	11.4		12.3		14.5
Interest on lease liabilities	0.7		0.8		0.9
Short-term lease cost	4.3		6.9		4.7
Total lease cost	$	194.7	$	173.9	$	156.8

Supplemental cash flow information related to leases was as follows (in millions):


	Fiscal Years Ended
	January 1, 2023		January 2, 2022		December 27, 2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows related to operating leases	$	182.6	$	147.0	$	130.9
Operating cash flows related to finance leases	$	0.7	$	0.8	$	1.0
Financing cash flows related to finance leases	$	11.3	$	12.7	$	14.3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	280.8	$	256.6	$	291.7
Finance leases	$	12.5	$	17.6	$	18.1

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):


	January 1, 2023		January 2, 2022
Operating Leases
Operating lease right-of-use assets	$	1,543.5	$	1,262.7
Accumulated amortization	(339.6)		(238.3)
Operating lease right-of-use assets, net	$	1,203.9	$	1,024.4
Other accrued expenses	$	87.6	$	94.3
Operating lease liabilities	1,165.0		984.8
Total operating lease liabilities	$	1,252.6	$	1,079.1
Finance Leases
Property and equipment, gross	$	156.6	$	157.6
Accumulated depreciation	(133.5)		(120.6)
Property and equipment, net	$	23.1	$	37.0
Other accrued expenses	$	9.1	$	10.9
Other liabilities	13.8		23.5
Total finance lease liabilities	$	22.9	$	34.4
Weighted Average Remaining Lease Term (Years)
Operating leases	12.53		11.89
Finance leases	2.81		3.52
Weighted Average Discount Rate
Operating leases	5.6%		5.4%
Finance leases	2.4%		2.5%

Maturities of lease liabilities as of January 1, 2023 are as follows (in millions):


	Operating Leases		Finance Leases
2023	$	156.1	$	9.1
2024	157.1		8.4
2025	148.5		4.2
2026	143.2		2.0
2027	135.5		—
Thereafter	1,057.1		—
	$	1,797.5	$	23.7
Less: imputed interest	544.9		0.8
Total	$	1,252.6	$	22.9

Leases

The components of leases expense were as follows (in millions):


	Fiscal Years Ended
	January 1, 2023		January 2, 2022		December 27, 2020
Operating lease cost	$	178.3	$	153.9	$	136.7
Finance lease cost:
Amortization of right-of-use assets	11.4		12.3		14.5
Interest on lease liabilities	0.7		0.8		0.9
Short-term lease cost	4.3		6.9		4.7
Total lease cost	$	194.7	$	173.9	$	156.8

Supplemental cash flow information related to leases was as follows (in millions):


	Fiscal Years Ended
	January 1, 2023		January 2, 2022		December 27, 2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows related to operating leases	$	182.6	$	147.0	$	130.9
Operating cash flows related to finance leases	$	0.7	$	0.8	$	1.0
Financing cash flows related to finance leases	$	11.3	$	12.7	$	14.3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	280.8	$	256.6	$	291.7
Finance leases	$	12.5	$	17.6	$	18.1

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):


	January 1, 2023		January 2, 2022
Operating Leases
Operating lease right-of-use assets	$	1,543.5	$	1,262.7
Accumulated amortization	(339.6)		(238.3)
Operating lease right-of-use assets, net	$	1,203.9	$	1,024.4
Other accrued expenses	$	87.6	$	94.3
Operating lease liabilities	1,165.0		984.8
Total operating lease liabilities	$	1,252.6	$	1,079.1
Finance Leases
Property and equipment, gross	$	156.6	$	157.6
Accumulated depreciation	(133.5)		(120.6)
Property and equipment, net	$	23.1	$	37.0
Other accrued expenses	$	9.1	$	10.9
Other liabilities	13.8		23.5
Total finance lease liabilities	$	22.9	$	34.4
Weighted Average Remaining Lease Term (Years)
Operating leases	12.53		11.89
Finance leases	2.81		3.52
Weighted Average Discount Rate
Operating leases	5.6%		5.4%
Finance leases	2.4%		2.5%

Maturities of lease liabilities as of January 1, 2023 are as follows (in millions):


	Operating Leases		Finance Leases
2023	$	156.1	$	9.1
2024	157.1		8.4
2025	148.5		4.2
2026	143.2		2.0
2027	135.5		—
Thereafter	1,057.1		—
	$	1,797.5	$	23.7
Less: imputed interest	544.9		0.8
Total	$	1,252.6	$	22.9