XML 27 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Leases
 9 Months Ended
Sep. 25, 2021
Leases [Abstract]  
Leases Leases
The following table details our total investment in operating and finance leases where the Company is the lessee:
(in thousands)
September 25, 2021December 26, 2020
Right-of-use assets
Finance leases (a)
$28,422 $14,211 
Operating leases905,527 884,927 
Total right-of-use assets$933,949 $899,138 
 
Current lease liabilities
Finance leases (b)
$2,897 $2,149 
Operating leases (c)
61,506 60,095 
Total current lease liabilities$64,403 $62,244 
 
Long-term lease liabilities
Finance leases (d)
$24,413 $16,726 
Operating leases843,925 818,001 
Total long-term lease liabilities$868,338 $834,727 
(a) Finance lease right-of-use assets are included in property and equipment, net on the consolidated balance sheet.
(b) Current finance lease liabilities are included in current portion of long-term debt on the consolidated balance sheet.
(c) Current operating lease liabilities are included in accrued expenses and other liabilities on the consolidated balance sheet.
(d) Long-term finance lease liabilities are included in long-term debt on the consolidated balance sheet.

The lease cost for operating and finance leases recognized in the consolidated statement of operations for the three and nine months ended September 25, 2021 and September 26, 2020 were as follows:
Three months endedNine months ended
(in thousands)
September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Finance lease expense:
Amortization of right-of-use assets$715 $280 $1,970 $565 
Interest on lease liabilities299 163 796 375 
Operating lease expense29,028 20,874 85,564 46,180 
Short-term lease expense523 685 1,619 818 
Variable lease expense206 203 692 492 
Total lease expense$30,771 $22,205 $90,641 $48,430 
The Company also subleases certain facilities to franchisees as a component of supply and other revenue on the consolidated statements of operations. The Company recognized $2 million in sublease revenue in both the three months ended September 25, 2021 and September 26, 2020 and $5 million in both the nine months ended September 25, 2021 and September 26, 2020.

During the nine months ended September 25, 2021, the Company sold 19 car wash and 3 maintenance properties in various locations throughout the United States for a total of $66 million, resulting in a net gain of $1 million. Concurrent with the closing of these sales, the Company entered into various operating lease agreements pursuant to which the Company leased back the properties. These lease agreements have terms ranging from 15 to 20 years and provide the Company with the option to extend the lease for up to an additional 20 years. The Company does not include option periods in its determination of the lease term unless renewals are deemed reasonably certain to be exercised. The Company recorded an operating lease right-of-use asset and operating lease liability of $62 million and $59 million, respectively, related to these lease arrangements.
The weighted average remaining lease term as of September 25, 2021 was 11.5 years for finance leases and 14.8 years for operating leases. The weighted average discount rate as of September 25, 2021 was 5.33% for finance leases and 4.82% for operating leases.
Supplemental cash flow information related to the Company’s lease arrangements for the nine months ended September 25, 2021 and September 26, 2020, respectively, was as follows:
Nine months ended
(in thousands)September 25, 2021September 26, 2020
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used in operating leases$79,310 $40,898 
     Operating cash flows used in finance leases736 360 
     Financing cash flows used in finance leases921 197 
Right-of-use assets obtained in exchange for lease obligations:
     Operating leases$75,268 $855,308 
     Finance leases7,249 12,808