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Leases | 3 Months Ended
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Nov. 21, 2020
Leases. |
Leases | Note K – Leases The Company’s leases primarily relate to its retail stores, distribution centers and vehicles under various non-callable leases. Retail leases typically have initial terms of between one and 20 years, with one to six optional renewal periods of one to five years each. Finance leases for vehicles typically have original terms between one and five years, and finance leases for real estate leases typically have terms of 20 or more years. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | November 21, |  | August 29,
(in thousands) |  | Classification |  | 2020 | ​ | 2020
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets: |  |  |  | ​ |  | ​ | ​ | ​
Operating |  | Operating lease right-of-use assets | ​ | $ | 2,607,019 | ​ | $ | 2,581,677
Finance |  | Property and equipment | ​ |  | 328,153 | ​ |  | 327,006
Total lease assets |  |  | ​ | $ | 2,935,172 | ​ | $ | 2,908,683
Liabilities: |  |  | ​ |  |  | ​ |  | ​
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating |  | Current portion of operating lease liabilities | ​ | $ | 246,332 | ​ | $ | 223,846
Finance |  | Accrued expenses and other | ​ |  | 63,408 | ​ |  | 67,498
Noncurrent: |  |  | ​ |  |  | ​ |  | ​
Operating |  | Operating lease liabilities, less current portion | ​ |  | 2,524,008 | ​ |  | 2,501,560
Finance |  | Other long-term liabilities | ​ |  | 169,513 | ​ |  | 155,855
Total lease liabilities |  |  | ​ | $ | 3,003,261 | ​ | $ | 2,948,759
​ Accumulated amortization related to finance lease assets was $95.0 million as of November 21, 2020 and $107.3 million as of August 29, 2020. Lease costs for finance and operating leases for the twelve week period ended November 21, 2020 are as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Twelve Weeks Ended
​ | ​ | ​ | ​ | November 21, | ​ | November 23,
(in thousands) | ​ | Statement of Income Location | ​ | 2020 |  | 2019
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Finance lease cost: |  |  |  | ​ |  | ​ | ​ |
Amortization of lease assets |  | Depreciation and amortization | ​ | $ | 9,319 | ​ | $ | 12,656
Interest on lease liabilities |  | Interest expense, net | ​ |  | 703 | ​ |  | 1,385
Operating lease cost(1) |  | Selling, general and administrative expenses | ​ |  | 84,103 | ​ |  | 81,799
Total lease cost | ​ | ​ | ​ | $ | 94,125 | ​ | $ | 95,840
​
(1) | Includes short-term leases, variable lease costs and sublease income, which are immaterial.
​ The following table summarizes the Company’s lease term and discount rate assumptions:
​ | ​ | ​ | ​
​ |  | November 21, |
​ | ​ | 2020 | ​
​ | ​ | ​ | ​
Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised: |  |  | ​
Finance leases – real estate |  | 27 | ​
Finance leases – vehicles |  | 4 | ​
Operating leases |  | 15 | ​
Weighted-average discount rate: |  |  | ​
Finance leases – real estate |  | 3.48 | %
Finance leases – vehicles |  | 2.04 | %
Operating leases |  | 3.46 | %
​ The following table summarizes the other information related to the Company’s lease liabilities:
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Twelve Weeks Ended
​ | ​ | November 21, | ​ | November 23,
(in thousands) | ​ | 2020 |  | 2019
​ | ​ | ​ | ​ | ​ | ​ | ​
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases | ​ | $ | 49,171 | ​ | $ | 50,526
Leased assets obtained in exchange for new finance lease liabilities | ​ |  | 23,136 | ​ | ​ | 18,297
Leased assets obtained in exchange for new operating lease liabilities | ​ |  | 94,105 | ​ | ​ | 19,656
​ As of November 21, 2020, the Company has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases have undiscounted future payments of approximately $36.8 million for real estate and $85.0 million for vehicles, of which the majority will replace existing leased vehicles, and will commence when the Company obtains possession of the underlying leased asset. Commencement dates are expected to be from fiscal 2021 to fiscal 2022.

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