Note 8—Leases

Lessee Arrangements

Operating Leases

We lease certain store, office, distribution, and manufacturing facilities under operating leases that expire at various dates through October 2031. We are obligated to make cash payments in connection with various lease obligations and purchase commitments. All of these obligations require cash payments to be made by us over varying periods of time. Certain leases are renewable at our option for periods of five to ten years. Certain of these arrangements are cancelable on short notice and others require payments upon early termination.

The following table summarizes the future annual minimum lease payments as of July 3, 2021 (in thousands):

Operating lease expense totaled $16.7 million and $16.1 million for the three months ended July 3, 2021 and June 27, 2020, respectively. Operating lease expense totaled $50.3 million and $48.4 million for the nine months ended July 3, 2021 and June 27, 2020, respectively.