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 26, 2022 and $5.6 million for the six months ended March 26, 2022. 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 2022	$	4,996,500
2023		9,547,692
2024		6,763,393
2025		5,962,685
2026		4,230,737
Thereafter		24,152,866
Total lease payments	$	55,653,873
Less amount representing interest		11,796,908
Present value of lease liabilities	$	43,856,965

On the Condensed Consolidated Balance Sheets, lease extensions exercised during fiscal year 2022 increased the line items “Operating lease right of use assets” and “Noncurrent operating lease liabilities” by $5.0 million each during the six months ended March 26, 2022. 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 26, 2022 was 3.51%, based on recent Company financings collateralized by store properties.

At March 26, 2022, 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		Six Months Ended
		March 26, 2022		March 26, 2022
Rents earned on owned and subleased properties:
Base rentals	$	4,773,104	$	9,670,462
Variable rentals		67,892		135,784
Total		4,840,996		9,806,246
Depreciation on owned properties leased to others		(1,463,937)		(2,927,875)
Other shopping center expenses		(670,365)		(1,318,152)
Total	$	2,706,694	$	5,560,219


Fiscal Year
Remainder of 2022	$	7,530,608
2023		13,805,776
2024		12,605,769
2025		11,241,965
2026		8,353,538
Thereafter		34,011,392
Total minimum future rental income	$	87,549,048