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 includes 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 $3.0 million for the three months ended March 27, 2021 and $5.7 million for the six months ended March 27, 2021. 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.



Fiscal Year
Remainder of 2021	$	5,037,867
2022		10,078,836
2023		8,388,490
2024		5,604,190
2025		4,803,483
Thereafter		25,889,334
Total lease payments	$	59,802,200
Less amount representing interest		12,708,477
Present value of lease liabilities	$	47,093,723

On the Condensed 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 $1.9 million each during the six months ended March 27, 2021.The weighted average remaining lease term for the Company’s operating leases is 12.7 years. The weighted average discount rate used to determine lease liability balances as of March 27, 2021 is 3.51%, based on recent Company financings collateralized by store properties.

At March 27, 2021, the Company owned and operated 84 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		Six Months Ended
		March 27, 2021		March 27, 2021
Rents earned on owned and subleased properties:
Base rentals	$	5,242,199	$	9,917,551
Variable rentals		72,457		144,915
Total		5,314,656		10,062,466
Depreciation on owned properties leased to others		(1,319,635)		(2,639,270)
Other shopping center expenses		(775,580)		(1,627,073)
Total	$	3,219,441	$	5,796,123


Fiscal Year
Remainder of 2021	$	7,033,514
2022		13,470,928
2023		12,370,845
2024		11,340,920
2025		10,118,142
Thereafter		37,610,343
Total minimum future rental income	$	91,944,692