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Leases - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Leases [Abstract]    
Leases Leases:
The Company leases the majority of its retail store locations, two distribution sites, its Merchandise Innovation Center, and certain equipment under various non-cancellable operating leases. The leases have varying terms and expire at various dates through 2042.  Store leases typically have initial terms of between 10 years and 15 years, with two to four optional renewal periods of five years each.  The exercise of lease renewal options is at our sole discretion. The Company has included lease renewal options in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company accounts for lease components (e.g., fixed payments including rent, real estate taxes, and insurance costs) together with non-lease components (e.g., fixed payment common-area maintenance) as a single component for all classes of underlying assets. Certain lease agreements require variable payments based upon actual costs of common-area maintenance, real estate taxes, and insurance. Further, certain lease agreements require variable payments based upon store sales above agreed-upon sales levels for the year and others require payments adjusted periodically for inflation. As substantially all of our leases do not provide an implicit rate, we estimate our collateralized incremental borrowing rate based upon a Company specific credit rating and yield curve analysis at commencement or modification date in determining the present value of lease payments.

The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. Short-term lease cost during the periods presented was immaterial.
In addition to the operating lease right-of-use assets presented on the Consolidated Balance Sheets, assets, net of accumulated amortization, under finance leases of $32.0 million and $33.5 million are recorded within the Property and equipment, net line on the Consolidated Balance Sheets as of December 25, 2021 and December 26, 2020, respectively.

The following table summarizes the Company’s classification of lease cost (in thousands):
Fiscal Year Ended
Statement of Income LocationDecember 25, 2021December 26, 2020
Finance lease cost:
Amortization of lease assetsDepreciation and amortization$5,085 $4,765 
Interest on lease liabilitiesInterest expense, net1,740 1,765 
Operating lease costSelling, general and administrative expenses400,908 379,318 
Variable lease costSelling, general and administrative expenses79,479 80,154 
Net lease cost$487,212 $466,002 

The following table summarizes the future maturities of the Company’s lease liabilities (in thousands):

Operating Leases (a)
Finance LeasesTotal
2022$418,059 $5,542 $423,601 
2023406,847 4,382 411,229 
2024383,8434,397388,240
2025360,3024,324364,627
2026326,3044,294330,599
After 20261,540,09323,2811,563,375
Total lease payments3,435,44946,2203,481,669
Less: Interest(539,283)(9,475)(548,758)
Present value of lease liabilities$2,896,167 $36,745 $2,932,912 

(a) Operating lease payments exclude $239.2 million of legally binding minimum lease payments for leases signed, but not yet commenced.

The following table summarizes the Company’s lease term and discount rate:
December 25, 2021December 26, 2020
Weighted-average remaining lease term (years):
Finance leases10.510.4
Operating leases10.09.1
Weighted-average discount rate:
Finance leases4.8 %4.9 %
Operating leases3.6 %4.1 %

The following table summarizes the other information related to the Company’s lease liabilities (in thousands):
Fiscal Year Ended
December 25, 2021December 26, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows used for finance leases$4,580 $4,170 
Operating cash flows used for finance leases1,740 1,765 
Operating cash flows for operating leases404,864 385,529 
 
Lease Term Expiration Through Date 2042  
Finance Lease, Right-of-Use Asset, after Accumulated Amortization $ 32,000 $ 33,500