Leases (Tables)

6 Months Ended

Jun. 28, 2020

Leases [Abstract]

Lease, Cost

The components of lease cost are as follows:

	Three Months Ended				Six Months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Finance lease cost:
Amortization of finance lease assets	$	3,338	$	1,631	$	6,524	$	4,748
Interest on finance lease liabilities	10,160		9,939		20,218		16,692
	13,498		11,570		26,742		21,440
Operating lease cost	23,969		19,086		45,134		43,729
Variable lease cost (a)	13,848		15,371		28,218		29,475
Short-term lease cost	991		1,153		2,321		2,279
Total operating lease cost (b)	38,808		35,610		75,673		75,483
Total lease cost	$	52,306	$	47,180	$	102,415	$	96,923

_______________

(a)Includes expenses for executory costs of $9,457 and $9,779 for the three months ended June 28, 2020 and June 30, 2019, respectively, and $19,200 and $19,303 for the six months ended June 28, 2020 and June 30, 2019, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $31,263 and $28,022 for the three months ended June 28, 2020 and June 30, 2019, respectively, and $60,554 and $60,473 for the six months ended June 28, 2020 and June 30, 2019, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $6,831 and $7,007 for the three months ended June 28, 2020 and June 30, 2019, respectively, and $13,664 and $13,600 for the six months ended June 28, 2020 and June 30, 2019, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.

Operating Lease, Lease Income

The components of lease income are as follows:

	Three Months Ended				Six Months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Sales-type and direct-financing leases:
Selling profit	$	569	$	37	$	1,197	$	1,971
Interest income	7,260		7,072		14,508		11,805
Operating lease income	$	43,052	$	43,959	$	87,004	$	89,164
Variable lease income	13,805		14,602		27,709		27,849
Franchise rental income (a)	$	56,857	$	58,561	$	114,713	$	117,013

_______________

(a)Includes sublease income of $41,489 and $42,921 for the three months ended June 28, 2020 and June 30, 2019, respectively, and $83,531 and $85,942 for the six months ended June 28, 2020 and June 30, 2019, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,450 and $9,779 for the three months ended June 28, 2020 and June 30, 2019, respectively, and $19,159 and $19,211 for the six months ended June 28, 2020 and June 30, 2019, respectively.