XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Leases | 6 Months Ended
--- | ---
Mar. 30, 2024
Leases [Abstract] |
Leases | 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 Leases – Rent expense for all operating leases totaled $2.7 million for the three months ended March 30, 2024 and $5.1 million for the six months ended March 30, 2024. 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. Finance Leases – Finance lease cost of $420.0 thousand included amortization expense of $357.0 thousand, which was included in operating and administrative expense, and $107.0 thousand of interest expense for the six months ended March 30, 2024. Future maturities of lease liabilities as of March 30, 2024 were as follows:
Fiscal Year |  | Operating Leases |  | Finance Leases
Remainder of 2024 |  | $ | 4,161,938 |  | $ | 420,000
2025 |  |  | 8,238,176 |  |  | 840,000
2026 |  |  | 7,076,845 |  |  | 840,000
2027 |  |  | 6,317,262 |  |  | 840,000
2028 |  |  | 4,775,296 |  |  | 840,000
Thereafter |  |  | 20,409,830 |  |  | 101,500
Total lease payments |  | $ | 50,979,347 |  | $ | 3,881,500
Less amount representing interest |  |  | 11,231,895 |  |  | 499,028
Present value of lease liabilities |  | $ | 39,747,452 |  | $ | 3,382,472
On the Condensed Consolidated Balance Sheets, lease extensions exercised during the six months ended March 30, 2024 increased the line items “Operating lease right of use assets” and “Noncurrent operating lease liabilities” by $1.5 million each. At March 30, 2024, the weighted average remaining lease term for the Company’s operating leases was 12.5 years. The weighted average discount rate used to determine operating lease liability balances as of March 30, 2024 was 5.6%, and was 6.0% for finance lease liability balances. Leases as Lessor At March 30, 2024, the Company owned and operated 96 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 30, 2024 |  | March 30, 2024
Rents earned on owned and subleased properties: |  |  |  |  |
Base rentals | $ | 6,821,138 |  | $ | 13,702,796
Variable rentals |  | 50,956 |  |  | 101,912
Total |  | 6,872,094 |  |  | 13,804,708
Depreciation on owned properties leased to others |  | (2,037,120) |  |  | (4,033,370)
Other shopping center expenses |  | (1,203,110) |  |  | (1,992,714)
Total | $ | 3,631,864 |  | $ | 7,778,624
Future minimum operating lease receipts at March 30, 2024 were as follows:
Fiscal Year |  |
Remainder of 2024 | $ | 10,041,564
2025 |  | 18,463,750
2026 |  | 14,827,515
2027 |  | 11,596,313
2028 |  | 8,869,669
Thereafter |  | 31,408,311
Total minimum future rental income | $ | 95,207,122

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration