Leases | 11. Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters with expiration dates through 2034. The components of operating and finance lease cost for the first quarter of 2019 were as follows: Fiscal Quarter Ended March 24, 2019 Operating lease cost $ 10,796 Finance lease cost: Amortization of right-of-use 254 Interest on lease liabilities 479 Total finance lease cost $ 733 Rent expense totaled $16.4 million and $15.4 million in the first quarter of 2019 and 2018, respectively, and includes operating lease cost, as well as expense for non-lease 11 Supplemental balance sheet information related to the Company’s finance leases as of March 24, 2019 and December 30, 2018 was as follows: March 24, December 30, Land and buildings $ 22,182 $ 22,171 Accumulated depreciation and amortization (6,932 ) (6,678 ) Finance lease assets, net $ 15,250 $ 15,493 Current portion of long-term debt $ 659 $ 643 Long-term debt, less current portion 16,202 16,363 Total principal payable on finance leases $ 16,861 $ 17,006 Operating Finance Weighted average remaining lease term 7 years 14 years Weighted average discount rate 4.1 % 11.3 % Supplemental cash flow information related to leases for the first quarter of 2019 was as follows: Fiscal Quarter Ended March 24, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,690 Operating cash flows from finance leases 479 Financing cash flows from finance leases 155 Right-of-use Operating leases 12,977 Finance leases — During the first quarter of 2018, the Company renewed the lease of a supply chain center building and extended the term of the lease through 2033. As a result of the lease renewal, the Company recorded non-cash Maturities of lease liabilities as of March 24, 2019 were as follows: Operating Finance 2019, excluding the quarter ended March 24, 2019 $ 29,314 $ 1,799 2020 38,791 2,416 2021 35,915 2,434 2022 32,545 2,452 2023 29,188 2,475 Thereafter 107,039 23,792 Total future minimum rental commitments 272,792 35,368 Less – amounts representing interest (42,531 ) (18,507 ) Total lease liabilities $ 230,261 $ 16,861 12 Maturities of lease liabilities as of December 30, 2018 were as follows: Operating Finance 2019 $ 40,752 $ 2,396 2020 37,519 2,415 2021 34,538 2,433 2022 30,763 2,451 2023 27,388 2,474 Thereafter 100,310 23,781 Total future minimum rental commitments $ 271,270 35,950 Less – amounts representing interest (18,944 ) Total principal payable on finance leases $ 17,006 As of March 24, 2019, the Company has additional operating leases for supply chain center tractors and trailers and a new office building being constructed by the Company’s landlord that had not yet commenced with estimated future minimum rental commitments of approximately $43.0 million. The Company has also entered into an additional finance lease for a supply chain center that had not yet commenced with estimated future minimum rental commitments of approximately $28.7 million. These leases are expected to commence in 2019 with lease terms of up to 15 years. These undiscounted amounts are not included in the tables above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees is $2.3 million and $2.4 million as of March 24, 2019 and December 30, 2018, respectively. We believe that none of these arrangements has or is likely to have a material effect on our results of operations, financial condition, revenues or expenses, capital expenditures or liquidity. |