Sprouts Farmers Market, Inc.SFM

Sprouts Farmers Market, Inc. Leases Disclosure

10-KFiled Feb 19, 20263 min read
Leases
Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows:
Year Ended
ClassificationDecember 28, 2025December 29, 2024December 31, 2023
Operating lease cost:
Open locations
Selling, general and administrative expenses (1)
$270,171 $247,312 $232,745 
Closed locationsStore closure and other costs, net1,111 7,122 4,029 
Finance lease cost:
Amortization of Property and EquipmentDepreciation and amortization1,499 1,128 1,062 
Interest on lease liabilitiesInterest expense943 747 816 
Variable lease cost:
Open locations
Selling, general and administrative expenses (1)
81,898 75,646 70,197 
Closed locationsStore closure and other costs, net775 2,138 2,302 
Sublease income:
Open locationsSelling, general and administrative expenses(586)(831)(832)
Closed locationsStore closure and other costs, net(241)(71)— 
Total net lease cost$355,570 $333,191 $310,319 
(1)Supply chain-related amounts of $20.8 million, $20.3 million and $18.2 million were included in cost of sales for 2025, 2024 and 2023, respectively.
Supplemental balance sheet information related to leases is as follows:
As Of
ClassificationDecember 28, 2025December 29, 2024
Assets
OperatingOperating lease assets$1,652,732 $1,466,903 
FinanceProperty and equipment, net10,680 6,161 
Total lease assets$1,663,412 $1,473,064 
Liabilities
Current:
OperatingCurrent portion of operating lease liabilities$177,263 $150,400 
FinanceCurrent portion of finance lease liabilities1,653 1,321 
Noncurrent:
OperatingLong-term operating lease liabilities1,682,425 1,520,272 
FinanceLong-term debt and other finance obligations12,165 7,248 
Total lease liabilities$1,873,506 $1,679,241 
202520242023
Weighted average remaining lease term (years):
Operating leases10.310.110.0
Finance leases7.65.86.7
Weighted average discount rate:
Operating leases7.0 %7.0 %7.2 %
Finance leases7.6 %8.4 %8.3 %
Supplemental cash flow and other information related to leases is as follows:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases$259,976 $249,862 $228,411 
Operating cash flows for finance leases943 747 816 
Lease assets obtained in exchange for lease liabilities:
Finance leases$6,266 $— $809 
Operating leases332,427 278,230 364,997 
A summary of maturities of lease liabilities is as follows:
Operating Leases(1), (2)
Finance Leases Total
2026$286,062 $2,253 $288,315 
2027285,295 2,875 288,170 
2028251,238 2,634 253,872 
2029261,792 2,175 263,967 
2030263,586 1,832 265,418 
Thereafter1,302,788 6,817 1,309,605 
Total lease payments2,650,761 18,586 2,669,347 
Less: Imputed interest(791,073)(4,768)(795,841)
Total lease liabilities1,859,688 13,818 1,873,506 
Less: Current portion(177,263)(1,653)(178,916)
Long-term lease liabilities$1,682,425 $12,165 $1,694,590 
(1)Operating lease payments include $94.6 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $1,175.9 million of legally binding minimum lease payments for leases executed but not yet commenced.
(2)These amounts include rental income related to subtenant agreements under which we will receive $1.1 million in 2026, $1.2 million in 2027, $0.9 million in 2028, $0.8 million in 2029, $0.6 million in 2030 and $0.2 million thereafter.
Free Sentinel

Want the next Sprouts Farmers Market, Inc. leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Sprouts Farmers Market, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&ESegmentsCommitmentsStock CompensationNew Standards