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Leases | 12 Months Ended
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Aug. 28, 2021
Leases [Abstract] |
Leases | 10. LEASES The Company’s lease portfolio includes certain real estate (branch offices, customer fulfillment centers and regional inventory centers), automobiles and other equipment. The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Operating leases are recorded on the balance sheet with operating lease assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. For real estate leases, the Company has elected the practical expedient which allows lease components and non-lease components, such as common area maintenance, to be grouped as a single lease component. The Company has also elected the practical expedient which allows leases with an initial term of 12 months or less to be excluded from the balance sheet. The Company does not guarantee any residual value in its lease agreements, there are no material restrictions or covenants imposed by lease arrangements, and there are no lease transactions with related parties. Real estate leases typically include one or more options to extend the lease. The Company regularly evaluates the renewal options, and when it is reasonably certain of exercise, the Company includes the renewal period in its lease term. The automobile leases contain variable lease payments based on inception and subsequent interest rate fluctuations. For fiscal years 2021 and 2020, the variable lease cost was a benefit due to low current interest rates. When readily determinable, the Company uses the interest rate implicit in its leases to discount lease payments. When the implicit rate is not readily determinable, as is the case with substantially all of the real estate leases, the Company utilizes the incremental borrowing rate. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The rate for each lease was determined using primarily the Company’s credit spread, the lease term, and currency. The components of lease cost for fiscal years 2021 and 2020 were as follows:
| For the Fiscal Years Ended
|  | August 28, 2021 |  | August 29, 2020
Operating lease cost |  | $ | 22,822 |  | $ | 25,445
Variable lease benefit |  |  | (2,001) |  |  | (865)
Short-term lease cost |  |  | 1,074 |  |  | 874
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets |  |  | 1,290 |  |  | 1,227
Interest on leased liabilities |  |  | 83 |  |  | 110
Total Lease Cost |  | $ | 23,268 |  | $ | 26,791
Supplemental balance sheet information relating to operating and finance leases is as follows:
|  |  |  | August 28, |  |  | August 29,
|  | Classification |  | 2021 |  |  | 2020
Assets |  |  |  |  |  |  |  |  |
Operating lease assets |  | Operating lease assets |  | $ | 49,011 | (2) |  | $ | 56,173
Finance lease assets (1) |  | Property, plant and equipment, net |  |  | 2,377 |  |  |  | 3,625
Total leased assets |  |  |  | $ | 51,388 |  |  | $ | 59,798
Liabilities |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |
Operating |  | Current portion of operating lease liabilities |  | $ | 13,927 | (2) |  | $ | 21,815
Finance |  | Current portion of debt including obligations under finance leases |  |  | 1,273 |  |  |  | 1,262
Noncurrent |  |  |  |  |  |  |  |  |
Operating |  | Noncurrent operating lease liabilities |  |  | 36,429 | (2) |  |  | 34,379
Finance |  | Long-term debt including obligations under finance leases |  |  | 1,188 |  |  |  | 2,453
Total lease liabilities |  |  |  | $ | 52,817 |  |  | $ | 59,909
(1) Finance lease assets are net of accumulated amo rtization of $2,729 and $1,439 as of August 28, 20 21 and August 29, 2020, respectively.
(2) During fiscal year 2021, the Company recorded an impairment charge of $14,975 for impacted operating lease assets, net of gains related to settlement of lease liabilities, in Restructuring costs on the Consolidated Statements of Income. See Note 13, “Restructuring Costs” for additional information.
|  |  | August 28, |  | August 29,
|  |  | 2021 |  | 2020
Weighted average remaining lease term (years) |  |  |  |  |  |  |
Operating Leases |  |  | 5.0 |  |  | 4.0 |
Finance Leases |  |  | 2.0 |  |  | 2.9 |
Weighted average discount rate |  |  |  |  |  |  |
Operating Leases |  |  | 3.6 | % |  | 3.6 | %
Finance Leases |  |  | 2.7 | % |  | 2.7 | %
The following table sets forth supplemental cash flow information related to operating and finance leases:
|  | For the Fiscal Years Ended
|  | August 28, 2021 |  | August 29, 2020
Operating Cash Outflows from Operating Leases |  | $ | 36,653 |  | $ | 24,879
Operating Cash Outflows from Finance Leases |  |  | 83 |  |  | 110
Financing Cash Outflows from Finance Leases |  |  | 1,295 |  |  | 1,247
Leased assets obtained in exchange for new lease liabilities: |  |  |  |  |  |
Operating Leases |  | $ | 26,211 |  | $ | 17,552
Finance Leases |  |  | 42 |  |  | 1,973
As of August 28, 2021, future lease payments were as follows:
Fiscal Year (1) |  | Operating Leases |  | Finance Leases |  | Total
2022 |  | $ | 15,420 |  | $ | 1,353 |  | $ | 16,773
2023 |  |  | 11,211 |  |  | 1,027 |  |  | 12,238
2024 |  |  | 7,983 |  |  | 161 |  |  | 8,144
2025 |  |  | 6,254 |  |  | 12 |  |  | 6,266
2026 |  |  | 5,717 |  |  | 6 |  |  | 5,723
Thereafter |  |  | 8,366 |  |  | - |  |  | 8,366
Total Lease Payments |  |  | 54,951 |  |  | 2,559 |  |  | 57,510
Less: Imputed Interest |  |  | 4,595 |  |  | 98 |  |  | 4,693
Present Value of Lease Liabilities (2) |  | $ | 50,356 |  | $ | 2,461 |  | $ | 52,817
(1) Future lease payments by fiscal year are based on contractual lease obligations.
(2) Includes the current portion of $13,927 for operating leases and $1,273 for finance leases.
As of August 28, 2021, the Company’s future lease obligations which have not yet commenced include the Company’s new, co-headquarters in Melville, New York. This 10-year lease commenced in September 2021 and will result in future obligations between $709 and $793 per year from fiscal year 2022 through fiscal year 2026 and $4,317 million thereafter.

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