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LEASES
 12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
LEASES LEASES
The Company has operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. The Company’s leases generally have initial terms ranging from 3 years to 10 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to early terminate the lease.
As of the periods presented, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or statement of cash flows.
The following components of lease expense are included in Selling, general, and administrative expenses on the Company’s consolidated statements of operations for the fiscal periods indicated:
Fiscal year ended
(dollars in thousands)December 28, 2024December 30, 2023December 31, 2022
Operating lease cost$177,034 $171,072 $160,210 
Variable lease cost(*)
57,992 56,089 66,400 
Net lease cost$235,026 $227,161 $226,610 
(*)Includes short-term leases, which are not material, and any operating lease impairment charges.
Supplemental balance sheet information related to leases was as follows:
December 28, 2024December 30, 2023
Weighted average remaining operating lease term (years)5.95.8
Weighted average discount rate for operating leases5.0%4.63%
Cash paid for amounts included in the measurement of operating lease liabilities in fiscal 2024 and fiscal 2023 was $175.0 million and $177.8 million, respectively.
Operating lease assets obtained in exchange for operating lease liabilities in fiscal 2024 and fiscal 2023 were $196.3 million and $184.6 million, respectively. Operating lease assets obtained primarily consist of new or modified leases.
As of December 28, 2024, the maturities of lease liabilities were as follows:
(dollars in thousands)Operating leases
2025$151,728 
2026146,911 
2027115,942 
202893,103 
202969,325 
After 2029167,329 
Total lease payments$744,338 
Less: Interest(112,271)
Present value of lease liabilities(*)
$632,067 
(*)As the rate implicit in the majority of the Company’s leases is not readily determinable, the Company uses the incremental borrowing rate based on the information available at commencement date, including the lease term and currency, to determine the present value of lease payments.
As of December 28, 2024, the minimum rental commitments for additional operating lease contracts, primarily for retail stores, that have not yet commenced are $24.7 million. These operating leases will commence in fiscal year 2025 and fiscal year 2026 with lease terms of 7 years to 10 years