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Leases (Tables)
 12 Months Ended
Dec. 29, 2019
Leases [Abstract]  
Assets and liabilities, lessee

The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheet as of the period indicated:
(dollars in thousands)
CONSOLIDATED BALANCE SHEET CLASSIFICATION
 
DECEMBER 29, 2019
Operating lease right-of-use assets
Operating lease right-of-use assets
 
$
1,266,548

Finance lease right-of-use assets (1)
Property, fixtures and equipment, net
 
2,036

Total lease assets, net
 
 
$
1,268,584

 
 
 
 
Current operating lease liabilities (2)
Accrued and other current liabilities
 
$
171,866

Current finance lease liabilities
Current portion of long-term debt
 
1,361

Non-current operating lease liabilities
Non-current operating lease liabilities
 
1,279,051

Non-current finance lease liabilities
Long-term debt, net
 
947

Total lease liabilities
 
 
$
1,453,225

________________
(1)
Net of accumulated amortization of $1.3 million.
(2)
Excludes accrued contingent percentage rent.
Lease, cost
Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statement of Operations and Comprehensive Income for the period indicated:
 
CONSOLIDATED INCOME STATEMENT CLASSIFICATION
 
FISCAL YEAR
(dollars in thousands)
 
2019
Operating leases (1)
Other restaurant operating
 
$
181,397

Variable lease cost
Other restaurant operating
 
3,504

Finance leases
 
 
 
Amortization of leased assets
Depreciation and amortization
 
1,400

Interest on lease liabilities
Interest expense, net
 
264

Sublease revenue (2)
Franchise and other revenues
 
(6,542
)
Lease costs, net (3)
 
 
$
180,023

________________
(1)
Excludes rent expense for office facilities and Company-owned closed or subleased properties for 2019 of $14.6 million, which is included in General and administrative expense and certain supply chain related rent expenses of $1.3 million, which is included in Cost of sales.
(2)
Excludes rental income from Company-owned properties for the fiscal year ended December 29, 2019 of $2.2 million.
(3)
During 2018 and 2017, the Company recorded rent expense of $185.4 million and $188.2 million, including variable rent expense of $4.5 million and $4.3 million, and sublease revenue of $5.6 million and $4.5 million, respectively.
Lessee, operating lease, liability, maturity
As of December 29, 2019, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands)
OPERATING LEASES
 
FINANCE LEASES
 
SUBLEASE REVENUES
2020 (1)
$
179,168

 
$
1,412

 
$
(6,191
)
2021
193,102

 
898

 
(6,232
)
2022
188,752

 
185

 
(6,131
)
2023
185,238

 
—

 
(6,012
)
2024
179,673

 
—

 
(5,856
)
Thereafter
1,717,709

 
—

 
(63,512
)
Total minimum lease payments (receipts) (2)
$
2,643,642

 
$
2,495

 
$
(93,934
)
Less: Interest
(1,192,725
)
 
(187
)
 
 
Present value of future lease payments
$
1,450,917

 
$
2,308

 
 
____________________
(1)
Net of operating lease prepaid rent of $14.7 million.
(2)
Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $111.9 million of signed operating leases that have not yet commenced.
Finance lease, liability, maturity
As of December 29, 2019, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands)
OPERATING LEASES
 
FINANCE LEASES
 
SUBLEASE REVENUES
2020 (1)
$
179,168

 
$
1,412

 
$
(6,191
)
2021
193,102

 
898

 
(6,232
)
2022
188,752

 
185

 
(6,131
)
2023
185,238

 
—

 
(6,012
)
2024
179,673

 
—

 
(5,856
)
Thereafter
1,717,709

 
—

 
(63,512
)
Total minimum lease payments (receipts) (2)
$
2,643,642

 
$
2,495

 
$
(93,934
)
Less: Interest
(1,192,725
)
 
(187
)
 
 
Present value of future lease payments
$
1,450,917

 
$
2,308

 
 
____________________
(1)
Net of operating lease prepaid rent of $14.7 million.
(2)
Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $111.9 million of signed operating leases that have not yet commenced.
Lessee, weighted average remaining lease term and weighted average discount rate
The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company’s leases as of the period indicated:
 
DECEMBER 29, 2019
Weighted-average remaining lease term (1):
 
Operating leases
14.5 years

Finance leases
1.8 years

Weighted-average discount rate (2):
 
Operating leases
8.52
%
Finance leases
9.01
%
____________________
(1)
Includes lease renewal options that are reasonably certain of exercise.
(2)
Based on the Company’s incremental borrowing rate at lease commencement.
Cash flow, operating activities, lessee
The following table is a summary of other impacts to the Company’s consolidated financial statements related to its leases for the period indicated:
 
FISCAL YEAR
(dollars in thousands)
2019
Cash flows from operating activities:
 
Cash paid for amounts included in the measurement of operating lease liabilities
$
191,855
Schedule of property subject to or available for operating leases The following table is a summary of assets leased to third parties as of the period indicated:
(dollars in thousands)
DECEMBER 29, 2019
Land
$
9,885

 
 
Buildings
$
12,823

Less: accumulated depreciation
(6,400
)
Buildings, net
$
6,423
Sale-leaseback transactions The following is a summary of sale-leaseback transactions with third-parties for the periods indicated:
 
FISCAL YEAR
(dollars in thousands)
2019
 
2018
 
2017
Gross proceeds from sale-leaseback transactions
$
7,337

 
$
17,294

 
$
108,010

Number of restaurant properties sold and leased back
2

 
6

 
31