Leases

12 Months Ended

Dec. 28, 2024

Our leasing portfolio includes lease arrangements for our warehouses, distribution centers, corporate offices and equipment. We lease substantially all our facilities on varying terms which often include one or more options to renew. We include options to extend in the lease term if they are reasonably certain of being exercised. We do not have residual value guarantees associated with our leases.

The following table includes the components of our rent expense recorded in SG&A expense:


	Fiscal Year		Fiscal Year
	2024		2023
Operating lease cost	$	128,935	$	108,644
Variable lease cost	39,894		42,110
Short-term lease cost	6,823		5,640
Total	$	175,652	$	156,394

Certain leases contain variable payments, which are expensed as incurred and not included in our operating lease right-of-use assets and operating lease liabilities. These amounts primarily include payments for maintenance, utilities, taxes, and insurance on our office and fulfillment center leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments at lease commencement. Certain adjustments to our operating lease right-of-use assets may be required for items such as initial direct costs paid or incentives received. We calculate the present value of our leases using an estimated incremental borrowing rate, which requires judgment. Our incremental borrowing rate is based upon an estimate of our regional secured borrowing rates. The estimated secured borrowing rates used at the date of adoption for each lease varies in accordance with the term as well as geographical region of the lease.

As of December 28, 2024, annual scheduled lease payments were as follows:


2025	$	111,953
2026	112,859
2027	88,725
2028	64,071
2029	52,917
Thereafter	129,532
Total lease payments	560,057
Less: imputed interest	(96,675)
Present value of lease liabilities	$	463,382

The weighted average remaining term for our leases as of December 28, 2024 and December 30, 2023 was 5.9 years and 6.0 years, respectively. The weighted average discount rate for our leases as of December 28, 2024 and December 30, 2023 was 6.3% and 6.1% , respectively.

Supplemental cash flow information related to our leases is as follows:


	Fiscal Year		Fiscal Year		Fiscal Year
	2024		2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	128,936	$	115,933	$	108,728
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	113,381	$	154,925	$	145,854