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Leases
 3 Months Ended
Mar. 26, 2022
Leases [Abstract]  
Leases Leases
The following table details our total investment in operating and finance leases where the Company is the lessee:
(in thousands)
March 26, 2022December 25, 2021
Right-of-use assets
Finance leases (a)
$33,032 $29,766 
Operating leases1,026,537 995,625 
Total right-of-use assets$1,059,569 $1,025,391 
 
Current lease liabilities
Finance leases (b)
$3,226 $3,101 
Operating leases (c)
66,686 57,588 
Total current lease liabilities$69,912 $60,689 
 
Long-term lease liabilities
Finance leases (d)
$31,322 $27,957 
Operating leases961,182 931,604 
Total long-term lease liabilities$992,504 $959,561 
(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 months ended March 26, 2022 and March 27, 2021 were as follows:
Three months ended
(in thousands)
March 26, 2022March 27, 2021
Finance lease expense:
Amortization of right-of-use assets$734 $614 
Interest on lease liabilities377 237 
Operating lease expense30,992 27,748 
Short-term lease expense490 1,314 
Variable lease expense353 246 
Total lease expense$32,946 $30,159 
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 March 26, 2022 and March 27, 2021.

During the three months ended March 26, 2022, the Company sold seven car wash and two maintenance properties in various locations throughout the United States for a total of $38 million, resulting in a net gain of $2 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 to 25 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 $33 million and $33 million, respectively, related to these lease arrangements.
Supplemental cash flow information related to the Company’s lease arrangements for the three months ended March 26, 2022 and March 27, 2021, respectively, was as follows:
Three months ended
(in thousands)March 26, 2022March 27, 2021
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used in operating leases$28,073 $25,794 
     Operating cash flows used in finance leases370 216 
     Financing cash flows used in finance leases414 317 
Right-of-use assets obtained in exchange for lease obligations:
     Operating leases$46,763 $6,849 
     Finance leases1,741 630 
Leases Leases
The following table details our total investment in operating and finance leases where the Company is the lessee:
(in thousands)
March 26, 2022December 25, 2021
Right-of-use assets
Finance leases (a)
$33,032 $29,766 
Operating leases1,026,537 995,625 
Total right-of-use assets$1,059,569 $1,025,391 
 
Current lease liabilities
Finance leases (b)
$3,226 $3,101 
Operating leases (c)
66,686 57,588 
Total current lease liabilities$69,912 $60,689 
 
Long-term lease liabilities
Finance leases (d)
$31,322 $27,957 
Operating leases961,182 931,604 
Total long-term lease liabilities$992,504 $959,561 
(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 months ended March 26, 2022 and March 27, 2021 were as follows:
Three months ended
(in thousands)
March 26, 2022March 27, 2021
Finance lease expense:
Amortization of right-of-use assets$734 $614 
Interest on lease liabilities377 237 
Operating lease expense30,992 27,748 
Short-term lease expense490 1,314 
Variable lease expense353 246 
Total lease expense$32,946 $30,159 
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 March 26, 2022 and March 27, 2021.

During the three months ended March 26, 2022, the Company sold seven car wash and two maintenance properties in various locations throughout the United States for a total of $38 million, resulting in a net gain of $2 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 to 25 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 $33 million and $33 million, respectively, related to these lease arrangements.
Supplemental cash flow information related to the Company’s lease arrangements for the three months ended March 26, 2022 and March 27, 2021, respectively, was as follows:
Three months ended
(in thousands)March 26, 2022March 27, 2021
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used in operating leases$28,073 $25,794 
     Operating cash flows used in finance leases370 216 
     Financing cash flows used in finance leases414 317 
Right-of-use assets obtained in exchange for lease obligations:
     Operating leases$46,763 $6,849 
     Finance leases1,741 630