Leases (Tables)

6 Months Ended

Jun. 29, 2019

Leases [Abstract]

Assets And Liabilities, Lessee

Included in the Company’s consolidated balance sheets were the following amounts related to operating and finance lease assets and liabilities (in thousands):

	June 29, 2019		December 29, 2018	Consolidated balance sheet classification
Assets:
Operating lease assets	$	375,165	—	Operating lease assets
Finance lease assets(a)	4,948		5,264	Property, equipment, and software, net
Total lease assets	$	380,113	5,264
Liabilities:
Current:
Operating lease liabilities	$	33,282	—	Operating lease liabilities
Finance lease liabilities	199		476	Other current liabilities
Long-term:
Operating lease liabilities	388,081		—	Operating lease liabilities
Finance lease liabilities	6,811		6,998	Other long-term liabilities
Total lease liabilities	$	428,373	7,474

(a)

Finance lease assets were recorded net of accumulated amortization of $5.0 million as of each of June 29, 2019 and December 29, 2018.

Schedule of Weighted Average Remaining Lease Term and Weighted-Average Discount Rate

The weighted-average remaining lease term and weighted-average discount rate for operating and finance leases as of June 29, 2019 were as follows:

	June 29, 2019
Weighted-average remaining lease term:
Operating leases	12.1
Finance leases	11.7
Weighted-average discount rate:
Operating leases	4.6	%
Finance leases	20.4	%

Lease, Cost

Lease costs and rental income for the three and six months ended June 29, 2019 were as follows (in thousands):

	Three months ended		Six months ended
	June 29, 2019		June 29, 2019
Finance lease cost:
Amortization of lease assets(a)	$	147	297
Interest on lease liabilities(b)	264		531
Total finance lease cost	$	411	828
Operating lease cost(c)	$	14,199	28,353
Variable lease cost(c)	6,235		12,329
Short-term lease cost(c)	2,501		5,196
Rental income(d)	31,679		60,707

(a) Amortization of finance lease assets is included in depreciation in the consolidated statements of operations.

(b) Interest recognized on finance lease liabilities is included in interest expense in the consolidated statements of operations.

(c) Operating and variable lease costs associated with franchised locations are included in occupancy expenses—franchised restaurants in the consolidated statements of operations. Operating, variable, and short-term lease costs for all other leases, including corporate facilities, vehicles, and other non-franchised assets are included in general and administrative expenses, net, and advertising expenses in the consolidated statements of operations.

(d) Rental income in the consolidated statements of operations primarily consists of sublease income. Lease income relating to variable lease payments was $13.0 million and $23.3 million for the three and six months ended June 29, 2019, respectively.

Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands):

	Three months ended		Six months ended
	June 29, 2019		June 29, 2019
Operating cash flows from operating leases	$	14,050	28,190
Operating cash flows from finance leases	264		531
Financing cash flows from finance leases	167		330

Lessee, Operating Lease, Liability, Maturity

Future lease commitments to be paid and received by the Company as of June 29, 2019 were as follows (in thousands):

	Payments			Receipts		Net leases
	Finance leases		Operating leases	Subleases
Fiscal year:
2019(a)	$	541	23,560	(31,751	)	(7,650	)
2020	1,327		55,775	(70,998	)	(13,896	)
2021	1,361		54,791	(67,614	)	(11,462	)
2022	1,398		52,079	(61,953	)	(8,476	)
2023	1,427		47,035	(53,279	)	(4,817	)
Thereafter	11,771		335,889	(315,634	)	32,026
Total lease commitments	17,825		569,129	(601,229	)	(14,275	)
Less amount representing interest	10,815		147,766
Present value of lease liabilities	$	7,010	421,363

Finance Lease, Liability, Maturity

Future lease commitments to be paid and received by the Company as of June 29, 2019 were as follows (in thousands):

	Payments			Receipts		Net leases
	Finance leases		Operating leases	Subleases
Fiscal year:
2019(a)	$	541	23,560	(31,751	)	(7,650	)
2020	1,327		55,775	(70,998	)	(13,896	)
2021	1,361		54,791	(67,614	)	(11,462	)
2022	1,398		52,079	(61,953	)	(8,476	)
2023	1,427		47,035	(53,279	)	(4,817	)
Thereafter	11,771		335,889	(315,634	)	32,026
Total lease commitments	17,825		569,129	(601,229	)	(14,275	)
Less amount representing interest	10,815		147,766
Present value of lease liabilities	$	7,010	421,363

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

Future lease commitments to be paid and received by the Company as of December 29, 2018 were as follows (in thousands):

	Payments			Receipts		Net leases
	Finance leases		Operating leases	Subleases
Fiscal year:
2019	$	1,535	60,166	(72,751	)	(11,050	)
2020	1,327		58,389	(69,704	)	(9,988	)
2021	1,361		56,107	(66,154	)	(8,686	)
2022	1,398		51,968	(60,282	)	(6,916	)
2023	1,427		46,340	(51,532	)	(3,765	)
Thereafter	11,770		329,641	(304,954	)	36,457
Total lease commitments	18,818		602,611	(625,377	)	(3,948	)
Less amount representing interest	11,344
Present value of lease liabilities	$	7,474

Lessor, Operating Lease, Payments to be Received, Maturity

Future lease commitments to be paid and received by the Company as of June 29, 2019 were as follows (in thousands):

	Payments			Receipts		Net leases
	Finance leases		Operating leases	Subleases
Fiscal year:
2019(a)	$	541	23,560	(31,751	)	(7,650	)
2020	1,327		55,775	(70,998	)	(13,896	)
2021	1,361		54,791	(67,614	)	(11,462	)
2022	1,398		52,079	(61,953	)	(8,476	)
2023	1,427		47,035	(53,279	)	(4,817	)
Thereafter	11,771		335,889	(315,634	)	32,026
Total lease commitments	17,825		569,129	(601,229	)	(14,275	)
Less amount representing interest	10,815		147,766
Present value of lease liabilities	$	7,010	421,363

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Future lease commitments to be paid and received by the Company as of December 29, 2018 were as follows (in thousands):

	Payments			Receipts		Net leases
	Finance leases		Operating leases	Subleases
Fiscal year:
2019	$	1,535	60,166	(72,751	)	(11,050	)
2020	1,327		58,389	(69,704	)	(9,988	)
2021	1,361		56,107	(66,154	)	(8,686	)
2022	1,398		51,968	(60,282	)	(6,916	)
2023	1,427		46,340	(51,532	)	(3,765	)
Thereafter	11,770		329,641	(304,954	)	36,457
Total lease commitments	18,818		602,611	(625,377	)	(3,948	)
Less amount representing interest	11,344
Present value of lease liabilities	$	7,474