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 $2.7 million for the three months ended June 26, 2021 and $8.4 million for the nine months ended June 26, 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	$	2,497,202
2022		9,990,903
2023		8,300,557
2024		5,516,257
2025		4,715,550
Thereafter		25,889,333
Total lease payments	$	56,909,802
Less amount representing interest		12,274,275
Present value of lease liabilities	$	44,635,527

On the Condensed Consolidated Balance Sheets, lease extensions exercised less leased properties purchased 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 nine months ended June 26, 2021. 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 June 26, 2021 is 3.51%, based on the most recent Company financings collateralized by store properties.

At June 26, 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		Nine Months Ended
		June 26, 2021		June 26, 2021
Rents earned on owned and subleased properties:
Base rentals	$	4,532,913	$	14,450,465
Variable rentals		72,458		217,373
Total		4,605,371		14,667,838
Depreciation on owned properties leased to others		(1,054,469)		(3,693,739)
Other shopping center expenses		(571,999)		(2,199,072)
Total	$	2,978,903	$	8,775,027


Fiscal Year
Remainder of 2021	$	3,500,699
2022		14,269,749
2023		12,962,271
2024		11,876,474
2025		10,553,809
Thereafter		38,267,329
Total minimum future rental income	$	91,430,331