Leases

6 Months Ended

Jan. 01, 2022

Leases [Abstract]

Leases

5. Leases

Substantially all the Company’s leases are classified as operating leases and are predominately related to real property for distribution centers, office space, and integration facilities with a lease term of up to 16 years. The Company’s equipment leases are primarily for automobiles and equipment and are not material to the consolidated financial statements.

The components of lease cost related to the Company’s operating leases were as follows (in thousands):

	Second Quarters Ended				Six Months Ended
	January 1,		January 2,		January 1,		January 2,
	2022		2021		2022		2021
Operating lease cost	$	17,129	$	18,095	$	34,975	$	36,497
Variable lease cost		6,733		5,423		12,851		11,711
Total lease cost	$	23,862	$	23,518	$	47,826	$	48,208

Future minimum operating lease payments as of January 1, 2022, are as follows (in thousands):

Fiscal Year
Remainder of fiscal 2022	$	34,027
2023		59,916
2024		43,094
2025		33,862
2026		28,943
Thereafter		133,754
Total future operating lease payments		333,596
Total imputed interest on operating lease liabilities		(56,074)
Total operating lease liabilities	$	277,522

Other information pertaining to operating leases consists of the following:

	Six Months Ended
	January 1,		January 2,
	2022		2021
Operating Lease Term and Discount Rate
Weighted-average remaining lease term in years	8.9		9.3
Weighted-average discount rate	3.8	%	3.8	%

Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands):

	Six Months Ended
	January 1,		January 2,
	2022		2021
Supplemental Cash Flow Information:
Cash paid for operating lease liabilities	$	29,456	$	29,157
Operating lease assets obtained from new operating lease liabilities		13,478		28,346