XML 28 R12.htm IDEA: XBRL DOCUMENT

Leases

12 Months Ended

Aug. 31, 2024

Note D – Leases

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


(in thousands)	Classification	August 31, 2024		August 26, 2023

Assets:
Operating	Operating lease right-of-use assets	$	3,057,780	$	2,998,097
Finance	Property and equipment		528,482		419,247
Total lease assets		$	3,586,262	$	3,417,344
Liabilities:
Current:
Operating	Current portion of operating lease liabilities	$	266,855	$	257,256
Finance	Accrued expenses and other		115,559		86,916
Noncurrent:
Operating	Operating lease liabilities, less current portion		2,960,174		2,917,046
Finance	Other long-term liabilities		283,882		200,702
Total lease liabilities		$	3,626,470	$	3,461,920

Accumulated amortization related to finance lease assets was $132.1 million as of August 31, 2024 and $132.5 million as of August 26, 2023.

Lease costs for finance and operating leases for the 53 weeks ended August 31, 2024 and 52 weeks ended August 26, 2023 are as follows:


		For the year ended
(in thousands)	Statement of Income Location	August 31, 2024		August 26, 2023

Finance lease cost:
Amortization of lease assets	Depreciation and amortization	$	84,392	$	71,913
Interest on lease liabilities	Interest expense, net		19,279		14,608
Operating lease cost⁽¹⁾	Selling, general and administrative expenses		485,164		437,762
Total lease cost		$	588,835	$	524,283

(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 31, 2024 having initial or remaining lease terms in excess of one year are as follows:


	Finance		Operating
(in thousands)	Leases		Leases		Total

2025	$	116,999	$	391,901	$	508,900
2026		117,426		424,859		542,285
2027		92,415		404,075		496,490
2028		61,692		375,799		437,491
2029		30,697		344,197		374,894
Thereafter		42,425		2,217,046		2,259,471
Total lease payments		461,654		4,157,877		4,619,531
Less: Interest		(62,213)		(930,848)		(993,061)
Present value of lease liabilities	$	399,441	$	3,227,029	$	3,626,470

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


	August 31, 2024

Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised:
Finance leases – real estate	21
Finance leases – vehicles	4
Operating leases	12
Weighted-average discount rate:
Finance leases – real estate	3.90	%
Finance leases – vehicles	5.17	%
Operating leases	4.13	%

Cash paid for amounts included in the measurement of operating lease liabilities of $362.5 million and $335.2 million was reflected in cash flows from operating activities in the consolidated statement of cash flows for fiscal years 2024 and 2023, respectively.

As of August 31, 2024, 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 $58.9 million and $26.0 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 2025 to fiscal 2026.