Leases

12 Months Ended

Aug. 28, 2021

Leases.

Leases

Note M – Leases

Lease-related assets and liabilities recorded on the Consolidated Balance Sheets are as follows:

(in thousands)	Classification	August 28, 2021		August 29, 2020
Assets:
Operating	Operating lease right-of-use assets	$	2,718,712	$	2,581,677
Finance	Property and equipment		383,736		327,006
Total lease assets		$	3,102,448	$	2,908,683
Liabilities:
Current:
Operating	Current portion of operating lease liabilities	$	236,568	$	223,846
Finance	Accrued expenses and other		89,932		67,498
Noncurrent:
Operating	Operating lease liabilities, less current portion		2,632,842		2,501,560
Finance	Other long-term liabilities		186,122		155,855
Total lease liabilities		$	3,145,464	$	2,948,759

Accumulated amortization related to finance lease assets was $107.0 million as of August 28, 2021 and $107.3 million as of August 29, 2020.

Lease costs for finance and operating leases for the 52 weeks ended August 28, 2021 and August 29, 2020 are as follows:

		For the year ended
(in thousands)	Statement of Income Location	August 28, 2021		August 29, 2020
Finance lease cost:
Amortization of lease assets	Depreciation and amortization	$	53,377	$	55,920
Interest on lease liabilities	Interest expense, net		2,957		4,355
Operating lease cost(1)	Selling, general and administrative expenses		371,109		355,230
Total lease cost		$	427,443	$	415,505

(1) Includes short-term leases, variable lease costs and sublease income, which are immaterial.

The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of August 28, 2021 having initial or remaining lease terms in excess of one year are as follows:

	Finance		Operating
(in thousands)	Leases		Leases		Total
2022	$	91,228	$	323,245	$	414,473
2023		56,534		346,367		402,901
2024		50,435		325,775		376,210
2025		39,628		300,916		340,544
2026		18,294		272,157		290,451
Thereafter		48,380		2,114,538		2,162,918
Total lease payments		304,499		3,682,998		3,987,497
Less: Interest		(28,445)		(813,588)		(842,033)
Present value of lease liabilities	$	276,054	$	2,869,410	$	3,145,464

The following table summarizes the Company’s lease term and discount rate assumptions:

	August 28, 2021
Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised:
Finance leases – real estate	25
Finance leases – vehicles	4
Operating leases	15
Weighted-average discount rate:
Finance leases – real estate	3.75	%
Finance leases – vehicles	1.37	%
Operating leases	3.44	%

Cash paid for amounts included in the measurement of operating lease liabilities of $300.6 million and $352.9 million was reflected in cash flows from operating activities in the consolidated statement of cash flows for fiscal years 2021 and 2020, respectively.

As of August 28, 2021, the Company has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases have undiscounted future payments of approximately $40.1 million and $69.2 million for real estate and vehicles, respectively, and will commence when the Company obtains possession of the underlying leased asset. Commencement dates are expected to be from fiscal 2022 to fiscal 2023.