Leases (Tables)

3 Months Ended

Mar. 29, 2020

The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated:



(dollars in thousands)	CONSOLIDATED BALANCE SHEET CLASSIFICATION	MARCH 29, 2020		DECEMBER 29, 2019
Operating lease right-of-use assets	Operating lease right-of-use assets	$	1,249,750	$	1,266,548
Finance lease right-of-use assets (1)	Property, fixtures and equipment, net	2,076		2,036
Total lease assets, net		$	1,251,826	$	1,268,584

Current operating lease liabilities (2)	Accrued and other current liabilities	$	185,278	$	171,866
Current finance lease liabilities	Current portion of long-term debt	1,242		1,361
Non-current operating lease liabilities	Non-current operating lease liabilities	1,281,372		1,279,051
Non-current finance lease liabilities	Long-term debt, net	1,086		947
Total lease liabilities		$	1,468,978	$	1,453,225

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(1)	Net of accumulated amortization of $1.6 million and $1.3 million as of March 29, 2020 and December 29, 2019, respectively.

(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 Statements of Operations and Comprehensive (Loss) Income for the periods indicated:



	CONSOLIDATED INCOME STATEMENT CLASSIFICATION	THIRTEEN WEEKS ENDED
(dollars in thousands)	CONSOLIDATED INCOME STATEMENT CLASSIFICATION	MARCH 29, 2020			MARCH 31, 2019
Operating leases (1)	Other restaurant operating	$	45,882		$	45,233
Variable lease cost	Other restaurant operating	1,120			819
Finance leases
Amortization of leased assets	Depreciation and amortization	342			324
Interest on lease liabilities	Interest expense, net	46			73
Sublease revenue (2)	Franchise and other revenues	(1,677		)	(1,314		)
Lease costs, net		$	45,713		$	45,135

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(1)	Excludes rent expense for office facilities and Company-owned closed or subleased properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $3.6 million, which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million, which is included in Cost of sales.

(2)

Excludes rental income from Company-owned properties for the thirteen weeks ended March 29, 2020 and March 31, 2019 of $0.2 million and $0.7 million, respectively.

Cash flow, operating activities

The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 29, 2020		MARCH 31, 2019
Cash flows from operating activities:
Cash paid for amounts included in the measurement of operating lease liabilities	$	48,492	$	47,649