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Leases | 12 Months Ended
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Sep. 03, 2022
Leases [Abstract] |
Leases | 10. LEASES The Company’s lease portfolio includes certain real estate (customer fulfillment centers, regional inventory centers and warehouses), 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 2022 and 2021, the variable lease cost was a benefit. 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 2022 and 2021 were as follows:
| For the Fiscal Years Ended
| September 3, 2022 |  | August 28, 2021
Operating lease cost | $ | 19,995 |  | $ | 22,822
Variable lease benefit |  | (355) |  |  | (2,001)
Short-term lease cost |  | 4,496 |  |  | 1,074
Finance lease cost: |  |  |  |  |
Amortization of leased assets |  | 1,265 |  |  | 1,290
Interest on leased liabilities |  | 48 |  |  | 83
Total Lease Cost | $ | 25,449 |  | $ | 23,268
Supplemental balance sheet information relating to operating and finance leases is as follows:
|  |  |  | September 3, |  | August 28, |
|  | Classification |  | 2022 |  | 2021 |
Assets |  |  |  |  |  |  |  |  |
Operating lease assets |  | Operating lease assets |  | $ | 64,780 |  | $ | 49,011 | (2)
Finance lease assets (1) |  | Property, plant and equipment, net |  |  | 1,118 |  |  | 2,377 |
Total leased assets |  |  |  | $ | 65,898 |  | $ | 51,388 |
Liabilities |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |
Operating |  | Current portion of operating lease liabilities |  | $ | 18,560 |  | $ | 13,927 | (2)
Finance |  | Current portion of debt including obligations under finance leases |  |  | 996 |  |  | 1,273 |
Noncurrent |  |  |  |  |  |  |  |  |
Operating |  | Noncurrent operating lease liabilities |  |  | 47,616 |  |  | 36,429 | (2)
Finance |  | Long-term debt including obligations under finance leases |  |  | 184 |  |  | 1,188 |
Total lease liabilities |  |  |  | $ | 67,356 |  | $ | 52,817 |
(1) Finance lease assets are net of accumulated amo rtization of $3,447 and $2,729 as of September 3, 20 22 and August 28, 2021, respectively.
(2) During fiscal year 2021, the Comp any recorded an impairment charge of $14,975 for impacted operating lease assets, net of gains related to settlement of lease liabilities, in Restructuring and other costs on the Consolidated Statements of Income. See Note 13, “Restructuring and Other Costs” for additional information.
|  |  | September 3, |  | August 28,
|  |  | 2022 |  | 2021
Weighted-average remaining lease term (in years) |  |  |  |  |  |  |
Operating Leases |  |  | 4.7 |  |  | 5.0 |
Finance Leases |  |  | 1.2 |  |  | 2.0 |
Weighted-average discount rate |  |  |  |  |  |  |
Operating Leases |  |  | 3.1 | % |  | 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
|  | September 3, 2022 |  | August 28, 2021
Operating Cash Outflows from Operating Leases |  | $ | 19,535 |  | $ | 36,653
Operating Cash Outflows from Finance Leases |  |  | 48 |  |  | 83
Financing Cash Outflows from Finance Leases |  |  | 1,305 |  |  | 1,295
Leased assets obtained in exchange for new lease liabilities: |  |  |  |  |  |
Operating Leases |  | $ | 33,608 |  | $ | 26,211
Finance Leases |  |  | 17 |  |  | 42
As of September 3, 2022, future lease payments were as follows:
Fiscal Year (1) |  | Operating Leases |  | Finance Leases |  | Total
2023 |  | $ | 20,103 |  | $ | 1,027 |  | $ | 21,130
2024 |  |  | 16,532 |  |  | 161 |  |  | 16,693
2025 |  |  | 12,225 |  |  | 12 |  |  | 12,237
2026 |  |  | 8,116 |  |  | 6 |  |  | 8,122
2027 |  |  | 6,122 |  |  | — |  |  | 6,122
Thereafter |  |  | 7,797 |  |  | — |  |  | 7,797
Total Lease Payments |  |  | 70,895 |  |  | 1,206 |  |  | 72,101
Less: Imputed Interest |  |  | 4,719 |  |  | 26 |  |  | 4,745
Present Value of Lease Liabilities (2) |  | $ | 66,176 |  | $ | 1,180 |  | $ | 67,356
(1) Future lease payments by fiscal year are based on contractual lease obligations.
(2) Includes the current portion of $18,560 for operating leases and $996 for finance leases.
As of September 3, 2022, the Company’s future lease obligations which have not yet commenced are immaterial. We have various arrangements for certain property we own under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is immaterial.

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