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Leases

12 Months Ended

Aug. 30, 2025

Note D – Leases

Lease-related assets and liabilities recorded on the Consolidated Balance Sheets are as follows:


(in thousands)	Classification	August 30, 2025		August 31, 2024

Assets:
Operating	Operating lease right-of-use assets	$	3,194,666	$	3,057,780
Finance	Property and equipment		528,760		528,482
Total lease assets		$	3,723,426	$	3,586,262
Liabilities:
Current:
Operating	Current portion of operating lease liabilities	$	283,564	$	266,855
Finance	Accrued expenses and other		111,521		115,559
Noncurrent:
Operating	Operating lease liabilities, less current portion		3,093,936		2,960,174
Finance	Other long-term liabilities		288,419		283,882
Total lease liabilities		$	3,777,440	$	3,626,470

Accumulated amortization related to finance lease assets was $139.6 million as of August 30, 2025, and $132.1 million as of August 31, 2024.

Lease costs for finance and operating leases for the 52 weeks ended August 30, 2025, and 53 weeks ended August 31, 2024 are as follows:


		For the year ended
(in thousands)	Statement of Income Location	August 30, 2025		August 31, 2024

Finance lease cost:
Amortization of lease assets	Depreciation and amortization	$	98,597	$	84,392
Interest on lease liabilities	Interest expense, net		21,204		19,279
Operating lease cost⁽¹⁾	Selling, general and administrative expenses		506,824		485,164
Total lease cost		$	626,625	$	588,835

(1)	Includes short-term leases, variable lease costs and sublease income, which are immaterial.

The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of August 30, 2025, having initial or remaining lease terms in excess of one year are as follows:


	Finance		Operating
(in thousands)	Leases		Leases		Total

2026	$	112,918	$	424,466	$	537,384
2027		121,123		458,397		579,520
2028		102,182		433,574		535,756
2029		70,538		403,213		473,751
2030		18,447		376,721		395,168
Thereafter		39,779		2,286,397		2,326,176
Total lease payments		464,987		4,382,768		4,847,755
Less: Interest		(65,047)		(1,005,268)		(1,070,315)
Present value of lease liabilities	$	399,940	$	3,377,500	$	3,777,440

The following table summarizes the Company’s lease term and discount rate assumptions:


	August 30, 2025

Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised:
Finance leases – real estate	20
Finance leases – vehicles	4
Operating leases	12
Weighted-average discount rate:
Finance leases – real estate	3.89	%
Finance leases – vehicles	5.71	%
Operating leases	4.41	%

Cash paid for amounts included in the measurement of operating lease liabilities of $382.7 million and $362.5 million was reflected in Other, net in Net cash provided by operating activities on the Consolidated Statements of Cash Flows for fiscal years 2025 and 2024, respectively.

As of August 30, 2025, 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 $83.8 million and $2.3 million for real estate and vehicles, respectively, and will commence when the

Company obtains possession of the underlying leased asset. Commencement dates are expected to be from fiscal 2026 to fiscal 2027.