Leases (Tables)

6 Months Ended

Jul. 03, 2022

Leases [Abstract]

Summary of the maturity of the Company's operating and finance lease liabilities

The maturity of the Company’s operating and finance lease liabilities as of July 3, 2022 is as follows:

(in thousands) Fiscal year ended	Operating Leases		Finance Leases
Undiscounted lease payments
Remainder of 2022	$	61,776	$	2,324
2023		125,385		4,682
2024		128,356		4,683
2025		132,358		4,721
2026		133,574		4,647
Thereafter		1,655,293		180,201
Total undiscounted lease payments		2,236,742		201,258
Present value adjustment		1,070,877		136,516
Total net lease liabilities	$	1,165,865	$	64,742

Summary of the supplemental disclosure for the statement of cash flows related to operating and finance leases

The following information represents supplemental disclosure for the statement of cash flows related to operating and finance leases:

	For the 26 Weeks Ended
(in thousands)	July 3, 2022			July 4, 2021
Cash flows from operating activities:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(56,266	)	$	(22,434	)
Interest payments for finance leases		(2,336	)		(1,271	)
Cash flows from financing activities:
Principal payments for finance leases	$	(137	)	$	(117	)
Supplemental disclosures of non-cash investing and financing activities:
Operating lease assets obtained in exchange for new operating lease liabilities	$	85,215		$	27,094

Summary of the additional information related to operating and finance leases

The following summarizes additional information related to operating and finance leases:

	As of
	July 3, 2022	January 2, 2022
Weighted-average remaining lease term
Finance leases	43 years	44 years
Operating leases	17 years	18 years
Weighted-average discount rate
Finance leases	7.00%	7.00%
Operating leases	8.16%	8.06%

Summary of the Company's estimated future undiscounted lease payments for current leases

The following summarizes the Company’s estimated future undiscounted lease payments for current leases under construction, including properties where the SHD team is acting as the construction manager:

(in thousands)	Operating Leases Under
Fiscal year ended	Construction
Estimated total undiscounted lease payments
Remainder of 2022	$	1,999
2023		15,288
2024		38,525
2025		56,105
2026		66,854
Thereafter		1,117,215
Total undiscounted lease payments expected to be capitalized	$	1,295,986