Leases

12 Months Ended

Mar. 25, 2023

Note 12 – Leases

We lease certain retail stores, 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 35 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 25, 2023 and March 26, 2022, net assets of $3.7 million and $4.3 million, respectively, and liabilities of $6.5 million and $6.9 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)		2023		2022		2021
Operating lease cost	$	41,308	$	38,947	$	35,998
Finance lease/financing obligations cost:
Amortization of leased assets		32,515		34,369		30,428
Interest on lease liabilities		16,099		18,346		18,344
Short term and variable lease cost		1,495		1,425		321
Sublease income		(115)		(102)		(95)
Total lease cost	$	91,302	$	92,985	$	84,996



Maturity of Lease Liabilities				Finance Leases and
(thousands)		Operating Leases ^(a)		Financing Obligations ^(b)
2024	$	44,461	$	53,981
2025		41,373		51,169
2026		37,942		48,815
2027		33,682		46,211
2028		27,193		44,278
Thereafter		79,013		170,842
Total undiscounted lease obligations	$	263,664	$	415,296
Less: imputed interest		(35,037)		(80,033)
Present value of lease obligations	$	228,627	$	335,263

(a)Operating lease obligations include $57.6 million related to options to extend operating leases that are reasonably certain of being exercised.

(b)Finance lease payments include $88.5 million related to options to extend finance leases that are reasonably certain of being exercised.

Total lease payments exclude $2.7 million of legally binding minimum lease payments for leases signed but not yet commenced.



Lease Term and Discount Rate	2023		2022		2021
Weighted average remaining lease term (years)
Operating leases	7.8		8.2		8.6
Finance leases and financing obligations	9.1		9.7		10.3
Weighted average discount rate
Operating leases	3.38	%	3.05	%	2.96	%
Finance leases and financing obligations	5.67	%	5.77	%	6.2	%



Other Information
(thousands)		2023		2022		2021
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	42,579	$	39,426	$	34,931
Operating cash flows from finance leases and financing obligations		16,327		18,400		18,602
Financing cash flows from finance leases and financing obligations		39,512		39,408		33,032