The Company conducts part of its retail operations from leased facilities. The initial terms of the leases are generally 20 years. The majority of the leases include one or more renewal options and provide that the Company pay property taxes, utilities, repairs and certain other costs incidental to occupation of the premises. Several leases contain clauses calling for percentage rentals based upon gross sales of the supermarket occupying the leased space. Step rent provisions, escalation clauses and lease incentives are taken into account in computing minimum lease payments.

Operating lease cost for all operating leases totaled $2.4 million for the three months ended June 27,2020 and $7.3 million for the nine months ending June 27, 2020. This amount included short-term (less than one year) leases, common area expenses, and variable lease costs, all of which are insignificant. Cash paid for lease liabilities in operating activities approximates operating lease cost.


Fiscal Year
Remainder of 2020	$	2,483,871
2021		9,561,737
2022		9,149,391
2023		7,043,212
2024		4,649,005
Thereafter		29,318,449
Total lease payments	$	62,205,665
Less amount representing interest		13,497,675
Present value of lease liabilities	$	48,707,990

On the Condensed Consolidated Balance Sheets, lease extensions exercised during the current quarter increased the line items “Operating lease right of use assets” and “Noncurrent operating lease liabilities” by $8.0 million each during the quarter ended June 27, 2020. The weighted average remaining lease term for the Company’s operating leases is 13.1 years. The weighted average discount rate used to determine lease liability balances as of June 27, 2020 is 3.51%, based on recent Company financings collateralized by store properties.

As a result of the adoption of ASU 2016-02 on September 29, 2019 the Company is required to present future minimum lease payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year. These future minimum lease payments were previously disclosed in our 2019 Annual Report on Form 10-K and accounted for under previous lease guidance. Commitments as of September 28, 2019 were as follows:


Fiscal Year
2020	$	9,756,136
2021		7,532,373
2022		6,692,661
2023		4,907,148
2024		2,583,629
Thereafter		27,187,519
Total minimum future rental commitments	$	58,659,466

At September 28, 2019, the Company owned and operated 79 shopping centers in conjunction with its supermarket operations. The Company leases to others a portion of its shopping center properties. The leases are non-cancelable operating lease agreements for periods ranging up to 20 years.

Rental income is included in the line item “Net sales” on the Consolidated Statements of Income. Depreciation on owned properties leased to others and other shopping center expenses are included in the line item “Cost of goods sold” on the Consolidated Statements of Income.


		Three Months Ended		Nine Months Ended
		June 27, 2020		June 27, 2020
Rents earned on owned and subleased properties:
Base rentals	$	1,848,402	$	9,813,041
Variable rentals		69,665		208,995
Total		1,918,067		10,022,036
Depreciation on owned properties leased to others		(1,328,968)		(3,986,904)
Other shopping center expenses		(753,134)		(2,503,882)
Total	$	(164,035)	$	3,531,250


Fiscal Year
Remainder of 2020	$	2,918,915
2021		11,000,184
2022		9,481,526
2023		8,403,861
2024		7,529,625
Thereafter		26,998,098
Total minimum future rental income	$	66,332,209

As a result of the adoption of ASU 2016-02 on September 29, 2019 the Company is required to present future minimum operating lease income receipts for operating leases having initial or remaining non-cancelable lease terms in excess of one year. These future minimum lease payments were previously disclosed in our 2019 Annual Report on Form 10-K and accounted for under previous lease guidance. Future minimum operating lease receipts as of September 28, 2019 were as follows:


Fiscal Year
2020	$	11,265,775
2021		8,855,781
2022		6,967,583
2023		5,862,260
2024		5,145,632
Thereafter		13,723,315
Total minimum future rental income	$	51,820,346