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Leases
 9 Months Ended
Sep. 24, 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)
September 24, 2022December 25, 2021
Right-of-use assets
Finance leases (a)
$38,997 $29,766 
Operating leases1,089,693 995,625 
Total right-of-use assets$1,128,690 $1,025,391 
 
Current lease liabilities
Finance leases (b)
$4,018 $3,101 
Operating leases (c)
70,837 57,588 
Total current lease liabilities$74,855 $60,689 
 
Long-term lease liabilities
Finance leases (d)
$37,296 $27,957 
Operating leases1,024,694 931,604 
Total long-term lease liabilities$1,061,990 $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 and nine months ended September 24, 2022 and September 25, 2021 were as follows:
Three months endedNine months ended
(in thousands)
September 24, 2022September 25, 2021September 24, 2022September 25, 2021
Finance lease expense:
Amortization of right-of-use assets$1,338 $715 $3,730 $1,970 
Interest on lease liabilities493 299 1,354 796 
Operating lease expense31,858 29,028 95,066 85,564 
Short-term lease expense431 523 1,408 1,619 
Variable lease expense405 206 1,191 692 
Total lease expense$34,525 $30,771 $102,749 $90,641 
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, $5 million, $2 million, and $5 million in sublease revenue in the three and nine months ended September 24, 2022 and September 25, 2021, respectively, as a component of Supply and other revenue on the consolidated statements of operations.

During the nine months ended September 24, 2022, the Company sold 30 car wash and seven maintenance properties in various locations throughout the United States for a total of $156 million, resulting in a net gain of $18 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 of 15 years to 20 years and provide the Company with the option to extend the lease for up to an additional 20 years 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 $121 million and $121 million, respectively, related to these lease arrangements as of September 24, 2022.

Supplemental cash flow information related to the Company’s lease arrangements for the nine months ended September 24, 2022 and September 25, 2021, respectively, was as follows:
Nine months ended
(in thousands)September 24, 2022September 25, 2021
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used in operating leases$86,423 $79,310 
     Operating cash flows used in finance leases1,214 736 
     Financing cash flows used in finance leases1,185 921 
Right-of-use assets obtained in exchange for lease obligations:
     Operating leases$72,395 $75,268 
     Finance leases6,583 7,249 
Leases Leases
The following table details our total investment in operating and finance leases where the Company is the lessee:
(in thousands)
September 24, 2022December 25, 2021
Right-of-use assets
Finance leases (a)
$38,997 $29,766 
Operating leases1,089,693 995,625 
Total right-of-use assets$1,128,690 $1,025,391 
 
Current lease liabilities
Finance leases (b)
$4,018 $3,101 
Operating leases (c)
70,837 57,588 
Total current lease liabilities$74,855 $60,689 
 
Long-term lease liabilities
Finance leases (d)
$37,296 $27,957 
Operating leases1,024,694 931,604 
Total long-term lease liabilities$1,061,990 $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 and nine months ended September 24, 2022 and September 25, 2021 were as follows:
Three months endedNine months ended
(in thousands)
September 24, 2022September 25, 2021September 24, 2022September 25, 2021
Finance lease expense:
Amortization of right-of-use assets$1,338 $715 $3,730 $1,970 
Interest on lease liabilities493 299 1,354 796 
Operating lease expense31,858 29,028 95,066 85,564 
Short-term lease expense431 523 1,408 1,619 
Variable lease expense405 206 1,191 692 
Total lease expense$34,525 $30,771 $102,749 $90,641 
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, $5 million, $2 million, and $5 million in sublease revenue in the three and nine months ended September 24, 2022 and September 25, 2021, respectively, as a component of Supply and other revenue on the consolidated statements of operations.

During the nine months ended September 24, 2022, the Company sold 30 car wash and seven maintenance properties in various locations throughout the United States for a total of $156 million, resulting in a net gain of $18 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 of 15 years to 20 years and provide the Company with the option to extend the lease for up to an additional 20 years 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 $121 million and $121 million, respectively, related to these lease arrangements as of September 24, 2022.

Supplemental cash flow information related to the Company’s lease arrangements for the nine months ended September 24, 2022 and September 25, 2021, respectively, was as follows:
Nine months ended
(in thousands)September 24, 2022September 25, 2021
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used in operating leases$86,423 $79,310 
     Operating cash flows used in finance leases1,214 736 
     Financing cash flows used in finance leases1,185 921 
Right-of-use assets obtained in exchange for lease obligations:
     Operating leases$72,395 $75,268 
     Finance leases6,583 7,249