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Leases | 12 Months Ended
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Dec. 27, 2025
Leases [Abstract] |
Lessee, Operating Leases | Leases The Company leases the majority of its retail store locations, certain distribution sites, its Merchandise Innovation Center, and certain equipment. The leases have varying terms and expire at various dates through 2046. 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 costs during the periods presented were 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 $31.4 million and $25.8 million are recorded within the Property and equipment, net line on the Consolidated Balance Sheets as of December 27, 2025 and December 28, 2024, respectively. The following table summarizes the Company’s classification of lease costs (in thousands):
|  |  |  | Fiscal Year Ended
|  | Statement of Income Location |  | December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of lease assets |  | Depreciation and amortization |  | $ | 2,786 |  |  | $ | 3,333 |  |  | $ | 3,379 |
Interest on lease liabilities |  | Interest expense, net |  | 1,227 |  |  | 1,510 |  |  | 1,632 |
Operating lease cost |  | Selling, general and administrative expenses |  | 559,104 |  |  | 505,855 |  |  | 465,850 |
Variable lease cost |  | Selling, general and administrative expenses |  | 115,918 |  |  | 105,898 |  |  | 99,044 |
Net lease cost |  |  |  | $ | 679,035 |  |  | $ | 616,596 |  |  | $ | 569,905 |
The following table summarizes the future maturities of the Company’s lease liabilities (in thousands):
|  | Operating Leases (a) |  | Finance Leases |  | Total
2026 |  | $ | 619,197 |  |  | $ | 6,525 |  |  | $ | 625,722 |
2027 |  | 594,384 |  |  | 6,463 |  |  | 600,847 |
2028 |  | 553,556 |  | 6,337 |  | 559,893
2029 |  | 509,491 |  | 5,978 |  | 515,469
2030 |  | 455,212 |  | 4,661 |  | 459,873
After 2030 |  | 2,564,864 |  | 11,261 |  | 2,576,125
Total lease payments |  | 5,296,704 |  | 41,225 |  | 5,337,929
Less: Interest |  | (1,154,957) |  |  | (5,077) |  |  | (1,160,034) |
Present value of lease liabilities |  | $ | 4,141,747 |  |  | $ | 36,148 |  |  | $ | 4,177,895 |
(a) Operating lease payments exclude $293.7 million of legally binding minimum lease payments for leases signed, but not yet commenced. The following table summarizes the Company’s lease terms and discount rates:
|  | December 27, 2025 |  | December 28, 2024
Weighted-average remaining lease term: |  |  |  |
Finance leases |  | 7.5 years |  | 8.8 years
Operating leases |  | 10.8 years |  | 10.4 years
Weighted-average discount rate: |  |  |  |
Finance leases |  | 4.5 | % |  | 4.6 | %
Operating leases |  | 4.5 | % |  | 4.2 | %
The following table summarizes the other information related to the Company’s lease liabilities (in thousands):
|  | Fiscal Year Ended
|  | December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Financing cash flows used for finance leases |  | $ | 2,819 |  |  | $ | 4,787 |  |  | 4,808
Operating cash flows used for finance leases |  | 1,227 |  |  | 1,510 |  |  | 1,632
Operating cash flows for operating leases |  | 514,263 |  |  | 508,971 |  |  | 466,748
Sale-leaseback Transactions During fiscal 2025, the Company completed its strategically planned sale-leaseback of 41 Tractor Supply store locations, resulting in proceeds of $252.6 million and a gain of $91.7 million, which is included in Selling, general, and administrative expenses. 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, certain distribution sites, its Merchandise Innovation Center, and certain equipment. The leases have varying terms and expire at various dates through 2046. 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 costs during the periods presented were 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 $31.4 million and $25.8 million are recorded within the Property and equipment, net line on the Consolidated Balance Sheets as of December 27, 2025 and December 28, 2024, respectively. The following table summarizes the Company’s classification of lease costs (in thousands):
|  |  |  | Fiscal Year Ended
|  | Statement of Income Location |  | December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of lease assets |  | Depreciation and amortization |  | $ | 2,786 |  |  | $ | 3,333 |  |  | $ | 3,379 |
Interest on lease liabilities |  | Interest expense, net |  | 1,227 |  |  | 1,510 |  |  | 1,632 |
Operating lease cost |  | Selling, general and administrative expenses |  | 559,104 |  |  | 505,855 |  |  | 465,850 |
Variable lease cost |  | Selling, general and administrative expenses |  | 115,918 |  |  | 105,898 |  |  | 99,044 |
Net lease cost |  |  |  | $ | 679,035 |  |  | $ | 616,596 |  |  | $ | 569,905 |
The following table summarizes the future maturities of the Company’s lease liabilities (in thousands):
|  | Operating Leases (a) |  | Finance Leases |  | Total
2026 |  | $ | 619,197 |  |  | $ | 6,525 |  |  | $ | 625,722 |
2027 |  | 594,384 |  |  | 6,463 |  |  | 600,847 |
2028 |  | 553,556 |  | 6,337 |  | 559,893
2029 |  | 509,491 |  | 5,978 |  | 515,469
2030 |  | 455,212 |  | 4,661 |  | 459,873
After 2030 |  | 2,564,864 |  | 11,261 |  | 2,576,125
Total lease payments |  | 5,296,704 |  | 41,225 |  | 5,337,929
Less: Interest |  | (1,154,957) |  |  | (5,077) |  |  | (1,160,034) |
Present value of lease liabilities |  | $ | 4,141,747 |  |  | $ | 36,148 |  |  | $ | 4,177,895 |
(a) Operating lease payments exclude $293.7 million of legally binding minimum lease payments for leases signed, but not yet commenced. The following table summarizes the Company’s lease terms and discount rates:
|  | December 27, 2025 |  | December 28, 2024
Weighted-average remaining lease term: |  |  |  |
Finance leases |  | 7.5 years |  | 8.8 years
Operating leases |  | 10.8 years |  | 10.4 years
Weighted-average discount rate: |  |  |  |
Finance leases |  | 4.5 | % |  | 4.6 | %
Operating leases |  | 4.5 | % |  | 4.2 | %
The following table summarizes the other information related to the Company’s lease liabilities (in thousands):
|  | Fiscal Year Ended
|  | December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Financing cash flows used for finance leases |  | $ | 2,819 |  |  | $ | 4,787 |  |  | 4,808
Operating cash flows used for finance leases |  | 1,227 |  |  | 1,510 |  |  | 1,632
Operating cash flows for operating leases |  | 514,263 |  |  | 508,971 |  |  | 466,748
Sale-leaseback Transactions During fiscal 2025, the Company completed its strategically planned sale-leaseback of 41 Tractor Supply store locations, resulting in proceeds of $252.6 million and a gain of $91.7 million, which is included in Selling, general, and administrative expenses. 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.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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