XML 23 R11.htm IDEA: XBRL DOCUMENT

Leases And Rental Expense

12 Months Ended

Sep. 25, 2021

Leases And Rental Expense [Abstract]

5. Leases and Rental Expense

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, capital improvements and other lease concessions are taken into account in computing lease payments. Operating lease expense is recognized on a straight-line basis over the minimum lease term.

Operating Leases - Rent expense for all operating leases of $11.1 million, $11.1 million and $12.4 million for fiscal years 2021, 2020 and 2019, respectively, is included in operating and administrative expenses. 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. Sub-lease rental income of $0.3 million for each of fiscal years 2021, 2020 and 2019, is included as a reduction of rental expense.

Maturities of operating lease liabilities as of September 25, 2021 are as follows:



Fiscal Year
2022	$	9,990,903
2023		8,300,557
2024		5,516,257
2025		4,715,550
2026		2,983,602
Thereafter		22,905,731
Total lease payments		54,412,600
Less amount representing interest		11,888,667
Present value of lease liabilities	$	42,523,933

On the Consolidated Balance Sheets, lease extensions exercised during fiscal year 2021 increased the line items “Operating lease right of use assets” and “Noncurrent operating lease liabilities” by $1.6 million each during the year ended September 25, 2021. 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 September 25, 2021 is 3.51%, based on recent Company financings collateralized by store properties.