| Leases |
Note D – Leases Lease-related assets and liabilities recorded on the Consolidated Balance Sheets are as follows: | | | | | | | | | (in thousands) | | Classification | | August 29, 2026 | | August 30, 2025 | | | | | | | | | | Assets: | | | | | | | | | Operating | | Operating lease right-of-use assets | | $ | 3,470,379 | | $ | 3,194,666 | Finance | | Property and equipment | | | 549,386 | | | 528,760 | Total lease assets | | | | $ | 4,019,765 | | $ | 3,723,426 | Liabilities: | | | | | | | | | Current: | | | | | | | | | Operating | | Current portion of operating lease liabilities | | $ | 300,102 | | $ | 283,564 | Finance | | Accrued expenses and other | | | 114,873 | | | 111,521 | Noncurrent: | | | | | | | | | Operating | | Operating lease liabilities, less current portion | | | 3,369,119 | | | 3,093,936 | Finance | | Other long-term liabilities | | | 302,455 | | | 288,419 | Total lease liabilities | | | | $ | 4,086,549 | | $ | 3,777,440 |
Accumulated amortization related to finance lease assets was $145.5 million as of August 29, 2026, and $139.6 million as of August 30, 2025. Lease costs for finance and operating leases for the 52 weeks ended August 29, 2026, and August 30, 2025 are as follows: | | | | | | | | | | | | | For the year ended | (in thousands) | | Statement of Income Location | | August 29, 2026 | | August 30, 2025 | | | | | | | | | | Finance lease cost: | | | | | | | | | Amortization of lease assets | | Depreciation and amortization | | $ | 106,122 | | $ | 98,597 | Interest on lease liabilities | | Interest expense, net | | | 19,005 | | | 21,204 | Operating lease cost(1) | | Selling, general and administrative expenses | | | 548,007 | | | 506,824 | Total lease cost | | | | $ | 673,134 | | $ | 626,625 |
| (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 29, 2026, having initial or remaining lease terms in excess of one year are as follows: | | | | | | | | | | | | Finance | | Operating | | | (in thousands) | | Leases | | Leases | | Total | | | | | | | | | | | 2027 | | $ | 116,099 | | $ | 469,893 | | $ | 585,992 | 2028 | | | 125,771 | | | 504,930 | | | 630,701 | 2029 | | | 107,612 | | | 480,002 | | | 587,614 | 2030 | | | 66,379 | | | 454,948 | | | 521,327 | 2031 | | | 26,137 | | | 421,101 | | | 447,238 | Thereafter | | | 35,634 | | | 2,616,917 | | | 2,652,551 | Total lease payments | | | 477,632 | | | 4,947,791 | | | 5,425,423 | Less: Interest | | | (60,304) | | | (1,278,570) | | | (1,338,874) | Present value of lease liabilities | | $ | 417,328 | | $ | 3,669,221 | | $ | 4,086,549 |
The following table summarizes the Company’s lease term and discount rate assumptions: | | | | | | August 29, 2026 | | | | | | Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised: | | | | Finance leases – real estate | | 20 | | Finance leases – vehicles | | 4 | | Operating leases | | 12 | | Weighted-average discount rate: | | | | Finance leases – real estate | | 3.85 | % | Finance leases – vehicles | | 5.02 | % | Operating leases | | 4.91 | % |
Cash paid for amounts included in the measurement of operating lease liabilities of $407.1 million and $382.7 million was reflected in Other, net in Net cash provided by operating activities on the Consolidated Statements of Cash Flows for fiscal years 2026 and 2025, respectively. As of August 29, 2026, 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 $80.0 million and $0.1 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 2027 to fiscal 2028.
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