The adoption of ASU 2016-02 Leases (Topic 842) had a significant impact on the Company’s Consolidated Balance Sheets, resulting in operating lease right-to-use assets of $202 million and lease liabilities of $211 million as of December 30, 2018. The difference between the operating lease right-to-use assets and lease liabilities represents prepaid and accrued rents, unfavorable lease obligations, favorable lease assets and deferred tenant allowances associated with operating leases as of December 30, 2018 and reclassified against the operating lease right-to-use asset upon adoption.

The following is a schedule of the lease costs included in “Operating, general and administrative expenses” for the fiscal year ended December 26, 2020.


(dollars in thousands)	2020		2019
Operating lease cost	$	46,283	$	46,063
Variable lease cost		11,167		10,998
Lease or sublease income		(8,636)		(7,749)
Net lease cost	$	48,814	$	49,312

The following is a schedule by years of the future minimum rental payments required under operating leases and total minimum sublease and lease rental income to be received as of December 26, 2020.


(dollars in thousands)		Leases	Subleases
2021	$	46,631	(3,683)
2022		41,800	(3,126)
2023		37,108	(2,462)
2024		31,925	(1,696)
2025		23,953	(1,336)
Thereafter		59,734	(4,846)
Total Lease Payments	$	241,151	(17,149)
Less: Interest		32,922	-
Present value of lease liabilities		208,229	(17,149)

The following is a schedule of weighted-average remaining lease terms and weighted-average discount rates as of December 26, 2020 and December 28, 2019.


Lease Term and Discount Rate	December 26, 2020	December 28, 2019
Weighted-average remaining lease term	4.06	4.44
Weighted-average discount rate	3.36%	3.47%

Prior to the adoption of the ASU, leases generally provide for fixed annual rentals, minimum annual rentals, contingent rentals and sublease income.

Rent expense and income on all leases for the fiscal year ended December 29, 2018 consisted of:


(dollars in thousands)	2018
Minimum annual rentals	$	47,253
Contingent rentals		419
Lease or sublease income		(7,757)
	$	39,915