XML 33 R15.htm IDEA: XBRL DOCUMENT v3.25.0.1
Leases
 12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Lessee, Operating 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 2045.  Store leases typically have initial terms of between 10 years and 20 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. Variable lease costs are expensed as incurred. 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 $25.8 million and $29.2 million are recorded within the Property and equipment, net line on the Consolidated Balance Sheets as of December 28, 2024 and December 30, 2023, respectively.

The following table summarizes the Company’s classification of lease cost (in thousands):
Fiscal Year Ended
Statement of Income LocationDecember 28, 2024December 30, 2023
Finance lease cost:
Amortization of lease assetsDepreciation and amortization$3,333 $3,379 
Interest on lease liabilitiesInterest expense, net1,510 1,632 
Operating lease costSelling, general and administrative expenses505,855 465,850 
Variable lease costSelling, general and administrative expenses105,898 99,044 
Net lease cost$616,596 $569,905 
The following table summarizes the future maturities of the Company’s lease liabilities (in thousands):

Operating Leases (a)
Finance LeasesTotal
2025$536,376 $4,645 $541,021 
2026518,234 4,720 522,954 
2027488,4344,802493,236
2028453,7384,812458,550
2029408,2604,632412,892
After 20292,052,36313,8782,066,241
Total lease payments4,457,405 37,4894,494,894
Less: Interest(896,240)(6,206)(902,446)
Present value of lease liabilities$3,561,165 $31,283 $3,592,448 

(a) Operating lease payments exclude $387.5 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 28, 2024December 30, 2023
Weighted-average remaining lease term (years):
Finance leases8.89.6
Operating leases10.410.1
Weighted-average discount rate:
Finance leases4.6 %4.7 %
Operating leases4.2 %4.1 %




The following table summarizes the other information related to the Company’s lease liabilities (in thousands):
Fiscal Year Ended
December 28, 2024December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows used for finance leases$4,787 $4,808 
Operating cash flows used for finance leases1,510 1,632 
Operating cash flows for operating leases508,971 466,748 

Sale-leaseback Transactions

During fiscal 2024, the Company completed its strategically planned sale-leaseback of 20 Tractor Supply store locations, resulting in proceeds of $130.8 million and a gain of $62.2 million, which is included in Selling, general, and administrative expenses. During fiscal 2023, the Company completed its strategically planned sale-leaseback of 15 Tractor Supply store locations, resulting in proceeds of $82.0 million and a gain of $41.7 million, which is included in Selling, general, and administrative expenses. The transactions met the accounting criteria for sale-leaseback treatment, and the resulting leases were accounted for as operating leases.
Lessee, Finance 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 2045.  Store leases typically have initial terms of between 10 years and 20 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. Variable lease costs are expensed as incurred. 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 $25.8 million and $29.2 million are recorded within the Property and equipment, net line on the Consolidated Balance Sheets as of December 28, 2024 and December 30, 2023, respectively.

The following table summarizes the Company’s classification of lease cost (in thousands):
Fiscal Year Ended
Statement of Income LocationDecember 28, 2024December 30, 2023
Finance lease cost:
Amortization of lease assetsDepreciation and amortization$3,333 $3,379 
Interest on lease liabilitiesInterest expense, net1,510 1,632 
Operating lease costSelling, general and administrative expenses505,855 465,850 
Variable lease costSelling, general and administrative expenses105,898 99,044 
Net lease cost$616,596 $569,905 
The following table summarizes the future maturities of the Company’s lease liabilities (in thousands):

Operating Leases (a)
Finance LeasesTotal
2025$536,376 $4,645 $541,021 
2026518,234 4,720 522,954 
2027488,4344,802493,236
2028453,7384,812458,550
2029408,2604,632412,892
After 20292,052,36313,8782,066,241
Total lease payments4,457,405 37,4894,494,894
Less: Interest(896,240)(6,206)(902,446)
Present value of lease liabilities$3,561,165 $31,283 $3,592,448 

(a) Operating lease payments exclude $387.5 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 28, 2024December 30, 2023
Weighted-average remaining lease term (years):
Finance leases8.89.6
Operating leases10.410.1
Weighted-average discount rate:
Finance leases4.6 %4.7 %
Operating leases4.2 %4.1 %




The following table summarizes the other information related to the Company’s lease liabilities (in thousands):
Fiscal Year Ended
December 28, 2024December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows used for finance leases$4,787 $4,808 
Operating cash flows used for finance leases1,510 1,632 
Operating cash flows for operating leases508,971 466,748 

Sale-leaseback Transactions

During fiscal 2024, the Company completed its strategically planned sale-leaseback of 20 Tractor Supply store locations, resulting in proceeds of $130.8 million and a gain of $62.2 million, which is included in Selling, general, and administrative expenses. During fiscal 2023, the Company completed its strategically planned sale-leaseback of 15 Tractor Supply store locations, resulting in proceeds of $82.0 million and a gain of $41.7 million, which is included in Selling, general, and administrative expenses. The transactions met the accounting criteria for sale-leaseback treatment, and the resulting leases were accounted for as operating leases.