What is the typical initial term length for most of Batteries Plus Bulbs' leases?

The Company leases certain retail stores, a warehouse facility, administrative offices and equipment under non-cancellable operating leases expiring at various dates through 2041. The Company is generally required to pay real estate taxes and other costs for the leased facilities.

Leases are categorized at their commencement date, which is the date the Company takes possession or control of the underlying asset. Except for the finance leases discussed in Note G - Finance Lease, all of the Company's retail stores, warehouse facility, administrative offices and equipment leases are operating leases. Most leases typically have initial terms of between one and five years, with one to three optional renewal periods of one to five years each. The exercise of lease renewal options is at the Company's sole discretion. The Company evaluates renewal options at lease commencement and on an ongoing basis and includes options that are reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Leases, and any sub-lease receipts, related to closed retail stores are recorded to the Company's contract termination accrual. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Source: Item 21 — Financial Statements (FDD pages 79–80)