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 $2.7 million for the three months ended December 26, 2020. This amount includes 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.

Maturities of operating lease liabilities as of December 26, 2020 are as follows:


Fiscal Year
Remainder of 2021	$	7,438,683
2022		9,732,036
2023		8,041,690
2024		5,257,390
2025		4,456,683
Thereafter		25,611,667
Total lease payments	$	60,538,149
Less amount representing interest		12,957,293
Present value of lease liabilities	$	47,580,856

The weighted average remaining lease term for the Company’s operating leases is 12.9 years. The weighted average discount rate used to determine lease liability balances as of December 26, 2020 is 3.51%, based on recent Company financings collateralized by store properties.

At December 26, 2020, the Company owned and operated 83 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
		December 26, 2020
Rents earned on owned and subleased properties:
Base rentals	$	4,675,352
Variable rentals		72,458
Total		4,747,810
Depreciation on owned properties leased to others		(1,319,635)
Other shopping center expenses		(851,493)
Total	$	2,576,682


Fiscal Year
Remainder of 2021	$	10,343,513
2022		12,969,906
2023		11,869,911
2024		10,918,920
2025		9,679,470
Thereafter		36,937,146
Total minimum future rental income	$	92,718,866