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Leases
12 Months Ended
Aug. 27, 2022
Leases  
Leases

Note M – Leases

Lease-related assets and liabilities recorded on the Consolidated Balance Sheets are as follows:

    

    

    

(in thousands)

    

Classification

    

August 27, 2022

August 28, 2021

Assets:

 

  

 

  

Operating

 

Operating lease right-of-use assets

$

2,918,817

$

2,718,712

Finance

 

Property and equipment

 

404,442

 

383,736

Total lease assets

 

  

$

3,323,259

$

3,102,448

Liabilities:

 

  

 

  

 

Current:

Operating

 

Current portion of operating lease liabilities

$

243,407

$

236,568

Finance

 

Accrued expenses and other

 

92,877

 

89,932

Noncurrent:

 

  

 

  

 

  

Operating

 

Operating lease liabilities, less current portion

 

2,837,973

 

2,632,842

Finance

 

Other long-term liabilities

 

217,428

 

186,122

Total lease liabilities

 

  

$

3,391,685

$

3,145,464

Accumulated amortization related to finance lease assets was $97.2 million as of August 27, 2022 and $107.0 million as of August 28, 2021.

Lease costs for finance and operating leases for the 52 weeks ended August 27, 2022 and August 28, 2021 are as follows:

    

    

For the year ended

(in thousands)

Statement of Income Location

 

August 27, 2022

August 28, 2021

Finance lease cost:

 

  

 

  

  

Amortization of lease assets

 

Depreciation and amortization

$

65,212

$

53,377

Interest on lease liabilities

 

Interest expense, net

 

4,351

 

2,957

Operating lease cost(1)

 

Selling, general and administrative expenses

 

401,000

 

371,109

Total lease cost

$

470,563

$

427,443

(1)Includes short-term leases, variable lease costs and sublease income, which are immaterial.

The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of August 27, 2022 having initial or remaining lease terms in excess of one year are as follows:

    

Finance

    

Operating 

    

(in thousands)

Leases

Leases

Total

2023

$

94,226

$

344,900

$

439,126

2024

 

73,476

 

376,444

 

449,920

2025

 

64,033

 

356,757

 

420,790

2026

 

45,023

 

330,200

 

375,223

2027

 

15,258

 

305,640

 

320,898

Thereafter

 

44,693

 

2,236,418

 

2,281,111

Total lease payments

336,709

3,950,359

 

4,287,068

Less: Interest

 

(26,404)

 

(868,979)

 

(895,383)

Present value of lease liabilities

$

310,305

$

3,081,380

$

3,391,685

The following table summarizes the Company’s lease term and discount rate assumptions:

    

 

August 27, 2022

Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised:

 

  

Finance leases – real estate

 

24

Finance leases – vehicles

 

4

Operating leases

 

13

Weighted-average discount rate:

 

Finance leases – real estate

 

3.76

%

Finance leases – vehicles

 

1.17

%

Operating leases

 

3.57

%

Cash paid for amounts included in the measurement of operating lease liabilities of $316.0 million and $300.6 million was reflected in cash flows from operating activities in the consolidated statement of cash flows for fiscal years 2022 and 2021, respectively.

As of August 27, 2022, the Company has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases have undiscounted future payments of approximately $27.2 million and $48.1 million for real estate and vehicles, respectively, and will commence when the Company obtains possession of the underlying leased asset. Commencement dates are expected to be from fiscal 2023 to fiscal 2024.