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Leases | 8 Months Ended
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Sep. 12, 2021
Leases [Abstract] |
Leases | 8. Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles, equipment and its corporate headquarters with expiration dates through 2041. The components of operating and finance lease cost for the third quarter and three fiscal quarters of 2021 and the third quarter and three fiscal quarters of 2020 were as follows:
|  | Fiscal Quarter Ended |  |  | Three Fiscal Quarters Ended |
|  | September 12, |  |  | September 6, |  |  | September 12, |  |  | September 6, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Operating lease cost |  | $ | 10,451 |  |  | $ | 10,267 |  |  | $ | 31,201 |  |  | $ | 30,099 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  | 1,022 |  |  |  | 548 |  |  |  | 2,944 |  |  |  | 1,248 |
Interest on lease liabilities |  |  | 1,050 |  |  |  | 794 |  |  |  | 2,798 |  |  |  | 2,066 |
Total finance lease cost |  | $ | 2,072 |  |  | $ | 1,342 |  |  | $ | 5,742 |  |  | $ | 3,314 |
Rent expense totaled $18.3 million and $54.4 million in the third quarter and three fiscal quarters of 2021, respectively. Rent expense totaled $17.4 million and $50.0 million in the third quarter and three fiscal quarters of 2020, respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Variable rent expense and rent expense for short-term leases were immaterial for the third quarter and three fiscal quarters of 2021 and 2020, respectively. Supplemental balance sheet information related to the Company’s finance leases as of September 12, 2021 and January 3, 2021 was as follows:
|  | September 12, |  |  | January 3, |
|  | 2021 |  |  | 2021 |
Land and buildings |  | $ | 74,085 |  |  | $ | 68,084 |
Accumulated depreciation and amortization |  |  | (12,991 | ) |  |  | (10,049 | )
Finance lease assets, net |  | $ | 61,094 |  |  | $ | 58,035 |
Current portion of long-term debt |  | $ | 3,346 |  |  | $ | 2,855 |
Long-term debt, less current portion |  |  | 61,180 |  |  |  | 57,700 |
Total principal payable on finance leases |  | $ | 64,526 |  |  | $ | 60,555 |
As of September 12, 2021 and January 3, 2021, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows:
|  | September 12, 2021 |  | January 3, 2021
|  | Operating |  | Finance |  | Operating |  | Finance
|  | Leases |  | Leases |  | Leases |  | Leases
Weighted average remaining lease term |  | 7 years |  | 15 years |  | 7 years |  | 16 years
Weighted average discount rate |  | 3.7% |  | 6.5% |  | 3.7% |  | 6.8%
Supplemental cash flow information related to leases for the third quarter and three fiscal quarters of 2021 and the third quarter and three fiscal quarters of 2020 were as follows:
|  | Fiscal Quarter Ended |  |  | Three Fiscal Quarters Ended |
|  | September 12, |  |  | September 6, |  |  | September 12, |  |  | September 6, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 10,236 |  |  | $ | 9,288 |  |  | $ | 29,528 |  |  | $ | 29,455 |
Operating cash flows from finance leases |  |  | 1,050 |  |  |  | 794 |  |  |  | 2,798 |  |  |  | 2,066 |
Financing cash flows from finance leases |  |  | 771 |  |  |  | 348 |  |  |  | 2,068 |  |  |  | 1,388 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |  |  |  |  |
Operating leases |  |  | 7,785 |  |  |  | 10,719 |  |  |  | 19,138 |  |  |  | 26,297 |
Finance leases |  |  | 390 |  |  |  | 1,717 |  |  |  | 6,050 |  |  |  | 20,463 |
Maturities of lease liabilities as of September 12, 2021 were as follows:
|  | Operating |  |  | Finance |
|  | Leases |  |  | Leases |
2021 |  | $ | 16,203 |  |  | $ | 2,394 |
2022 |  |  | 44,458 |  |  |  | 7,197 |
2023 |  |  | 39,019 |  |  |  | 6,759 |
2024 |  |  | 37,769 |  |  |  | 7,216 |
2025 |  |  | 31,375 |  |  |  | 7,018 |
Thereafter |  |  | 92,261 |  |  |  | 74,509 |
Total future minimum rental commitments |  |  | 261,085 |  |  |  | 105,093 |
Less – amounts representing interest |  |  | (30,968 | ) |  |  | (40,567 | )
Total lease liabilities |  | $ | 230,117 |  |  | $ | 64,526 |
As of September 12, 2021, the Company has additional leases for one supply chain center and certain supply chain tractors and trailers that had not yet commenced with estimated future minimum rental commitments of approximately $66.6 million. These leases are expected to commence in 2021 and 2022 with lease terms of up to 16 years. These undiscounted amounts are not included in the table above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees was $10.3 million and $12.6 million as of September 12, 2021 and January 3, 2021, respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues, expenses or liquidity.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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