Lease assets and lease liabilities are recognized on the condensed Consolidated Balance Sheets for substantially all lease arrangements based on the present value of future lease payments as required by ASC 842, Leases. The lease portfolio consists of operating leases comprised of operating agreements which grant the Company the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. There is one immaterial finance lease and no short-term leases (i.e., those with a term of twelve months or less).

A right of use (“ROU”) asset and lease liability are recognized in the condensed Consolidated Balance Sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability when it is reasonably certain that such options will be exercised. Lease terms generally range from one year to fifteen years and a number of agreements contain minimum annual guarantees, many of which are adjusted at the start of each contract year based on the actual sales activity of the leased premises for the most recently completed contract year.

Payment terms are based on the fixed rates explicit in the lease, including minimum annual guarantees, and/or variable rates based on: i) a percentage of revenues or sales arising at the relevant premises (“variable commissions”), and/or ii) operating expenses, such as common area charges, real estate taxes and insurance. For contracts with fixed lease payments, including those with minimum annual guarantees, lease expense is recognized on a straight-line basis over the lease term. For variable commissions, lease expense is recognized as incurred. The Company's lease agreements do not contain any material residual value guarantees, material restrictions or covenants.

Incremental borrowing rates are used to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable. An estimated collateralized incremental borrowing rate is applied as of the effective date or the commencement date of the lease, whichever is later.


	13 weeks ended
	August 2, 2025		July 27, 2024
			As Restated
Variable lease expense	$	25,212	$	20,725
Operating lease expense	12,735		16,279
Net lease expense	$	37,947	$	37,004


	As of August 2, 2025
Remainder of Fiscal 2026	$	71,955
Fiscal 2027	38,950
Fiscal 2028	32,598
Fiscal 2029	29,376
Fiscal 2030	22,920
Thereafter	24,415
Total lease payments	220,214
Less: imputed interest	(23,580)
Operating lease liabilities at period end	$	196,634

Future lease payment obligations related to leases that were entered into, but did not commence as of August 2, 2025, were not material.


	As of
	August 2, 2025			July 27, 2024
				As Restated
Weighted average remaining lease term (in years)	4.6 years			4.1 years
Weighted average discount rate	5.6		%	4.2		%

Supplemental cash flow information related to leases is as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,808		$	10,125
Operating cash flows from financing leases	$	14		$	—

ROU assets obtained in exchange for lease obligations:
Operating leases	$	25,564		$	13,287