Leases

12 Months Ended

Mar. 26, 2022

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 36 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 26, 2022 and March 27, 2021, net assets of $4.3 million and $4.4 million, respectively, and liabilities of $6.9 million and $7.2 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)		2022		2021		2020
Operating lease cost	$	38,947	$	35,998	$	38,525
Finance lease/financing obligations cost:
Amortization of leased assets		34,369		30,428		21,033
Interest on lease liabilities		18,346		18,344		21,330
Short term and variable lease cost		1,425		321		2,194
Sublease income		(102)		(95)		(166)
Total lease cost	$	92,985	$	84,996	$	82,916



Maturity of Lease Liabilities				Finance Leases and
(thousands)		Operating Leases ^(a)		Financing Obligations ^(b)
2023	$	40,933	$	58,875
2024		38,866		58,127
2025		35,553		55,046
2026		32,136		52,413
2027		27,907		49,488
Thereafter		85,448		225,859
Total undiscounted lease obligations	$	260,843	$	499,808
Less: imputed interest		(33,514)		(100,241)
Present value of lease obligations	$	227,329	$	399,567

(a)Operating lease obligations include $65.4 million related to options to extend operating leases that are reasonably certain of being exercised.

(b) Finance lease payments include $103.5 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	2022		2021
Weighted average remaining lease term (years)
Operating leases	8.2		8.6
Finance leases and financing obligations	9.7		10.3
Weighted average discount rate
Operating leases	3.05	%	2.96	%
Finance leases and financing obligations	5.77	%	6.20	%



Other Information
(thousands)		2022		2021		2020
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	39,426	$	34,931	$	36,808
Operating cash flows from finance leases and financing obligations		18,400		18,602		21,340
Financing cash flows from finance leases and financing obligations		39,408		33,032		27,212