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Leases | 6 Months Ended
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Mar. 25, 2023
Leases and Rental Expense [Abstract] |
Leases and Rental Expense | J. LEASES Leases as Lessee 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 require that the Company pay property taxes, utilities, repairs and certain other costs incidental to occupation of the premises. Several leases contain clauses that require rental payments based on a percentage of 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 March 25, 2023 and $5.3 million for the six months ended March 25, 2023. 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. Maturities of operating lease liabilities as of March 25, 2023 were as follows:
Fiscal Year |  |
Remainder of 2023 | $ | 4,369,583
2024 |  | 8,030,542
2025 |  | 7,229,835
2026 |  | 5,947,887
2027 |  | 5,097,637
Thereafter |  | 22,704,055
Total lease payments | $ | 53,379,539
Less amount representing interest |  | 11,234,963
Present value of lease liabilities | $ | 42,144,576
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 25, 2023 was 3.51%, based on our incremental borrowing rate. Leases as Lessor At March 25, 2023, the Company owned and operated 92 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 terms 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 25, 2023 |  |  | March 25, 2023
Rents earned on owned and subleased properties: |  |  |  |  |
Base rentals | $ | 5,825,202 |  | $ | 11,942,079
Variable rentals |  | 41,723 |  |  | 83,445
Total |  | 5,866,925 |  |  | 12,025,524
Depreciation on owned properties leased to others |  | (1,754,831) |  |  | (3,334,553)
Other shopping center expenses |  | (910,994) |  |  | (1,537,965)
Total | $ | 3,201,100 |  | $ | 7,153,006
Future minimum operating lease receipts at March 25, 2023 were as follows:
Fiscal Year |  |
Remainder of 2023 | $ | 9,120,094
2024 |  | 16,911,437
2025 |  | 15,097,395
2026 |  | 11,617,994
2027 |  | 8,847,337
Thereafter |  | 31,848,431
Total minimum future rental income | $ | 93,442,688

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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