Leases

12 Months Ended

Mar. 27, 2021

Note 13 – Leases

We lease certain retail stores, distribution centers, office space and land as well as service contracts that are considered leases.

Our leases have remaining lease terms, including renewals reasonably certain to be exercised, of less than one year to approximately 37 years. Most of our leases include one or more options to extend the lease, for periods ranging from three years to 25 years or more.

Historical failed sale leasebacks that were assumed through acquisitions and do not qualify for sale leaseback accounting continue to be accounted for as financing obligations. As of March 27, 2021 and March 28, 2020, net assets of $4.4 million and $4.5 million, respectively, and liabilities of $7.2 million and $7.5 million, respectively, due to failed sale leaseback arrangements were included with finance lease assets and liabilities, respectively, on the Consolidated Balance Sheets.



Lease Cost
(thousands)		2021		2020
Operating lease cost	$	35,998	$	38,525
Finance lease/financing obligations cost:
Amortization of leased assets		30,428		21,033
Interest on lease liabilities		18,344		21,330
Short term and variable lease cost		321		2,194
Sublease income		(95)		(166)
Total lease cost	$	84,996	$	82,916

As reported under the previous accounting standard, net rental expense and amortization of finance lease assets was $38.0 million and $14.7 million, respectively, for 2019.



Maturity of Lease Liabilities				Finance Leases and
(thousands)		Operating Leases ^(a)		Financing Obligations ^(b)
2022	$	36,451	$	55,389
2023		34,381		55,487
2024		31,685		54,405
2025		28,414		51,494
2026		25,161		48,992
Thereafter		83,454		250,812
Total undiscounted lease obligations	$	239,546	$	516,579
Less: imputed interest		(30,919)		(112,446)
Present value of lease obligations	$	208,627	$	404,133

(a)Operating lease obligations include $61.0 million related to options to extend operating leases that are reasonably certain of being exercised.

(b)Finance lease payments include $108.4 million related to options to extend finance leases that are reasonably certain of being exercised.

Total lease payments exclude $2.4 million of legally binding minimum lease payments for leases signed but not yet commenced.



Lease Term and Discount Rate	2021		2020
Weighted average remaining lease term (years)
Operating leases	8.6		9.4
Finance leases and financing obligations	10.3		9.9
Weighted average discount rate
Operating leases	2.96	%	3.51	%
Finance leases and financing obligations	6.20	%	8.73	%



Other Information
(thousands)		2021		2020
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	34,931	$	36,808
Operating cash flows from finance leases and financing obligations		18,602		21,340
Financing cash flows from finance leases and financing obligations		33,032		27,212