
	June 30, 2021
	Finance Leases(1)		Operating Leases(2)		Total Leases
Lease assets	$	98.2	$	1,007.4	$	1,105.6

Current lease liabilities	21.5		97.7		119.2
Long-term lease liabilities	99.8		1,006.7		1,106.5
Total lease liabilities	$	121.3	$	1,104.4	$	1,225.7


	June 24, 2020
	Finance Leases(1)		Operating Leases(2)		Total Leases
Lease assets	$	81.6	$	1,054.6	$	1,136.2

Current lease liabilities	12.2		117.3		129.5
Long-term lease liabilities	89.9		1,061.6		1,151.5
Total lease liabilities	$	102.1	$	1,178.9	$	1,281.0

(1)Finance lease assets are recorded in Property and equipment, at cost, and the related current and long-term lease liabilities are recorded within Other accrued liabilities and Long-term debt and finance leases, less current installments, respectively.

(2)Operating lease assets are recorded in Operating lease assets and the related current and long-term lease liabilities are recorded within Operating lease liabilities and Long-term operating lease liabilities, less current portion, respectively.

The components of lease expenses, including variable lease costs primarily consisting of rent based on a percentage of sales, common area maintenance and real estate tax charges, and short-term lease expenses for leases with lease terms less than twelve months are included in the Consolidated Statements of Comprehensive Income as follows:


	Fiscal Years Ended
	June 30, 2021		June 24, 2020
Operating lease cost	$	167.2	$	162.8
Finance lease amortization	17.3		20.9
Finance lease interest	5.9		4.6
Short-term lease cost	0.5		1.4
Variable lease cost	57.9		57.7
Sublease income	(4.4)		(4.6)
Total lease costs, net	$	244.4	$	242.8


	Fiscal Years Ended
	June 30, 2021		June 24, 2020
Cash flows from operating activities
Cash paid related to lease liabilities
Operating leases(1)	$	195.5	$	159.6
Finance leases	5.9		4.6
Cash flows from financing activities
Cash paid related to lease liabilities
Finance leases	20.0		17.8
Non-cash lease assets obtained in exchange for lease liabilities(2)
Operating leases	60.6		224.0
Finance leases	29.8		73.2

(1)Cash paid related to lease liabilities for Operating leases increased in fiscal 2021 primarily due to the prepayment of July 2021 lease payments and lease payments made during fiscal 2021 for rents that were deferred in fiscal 2020 due to the impacts of the COVID-19 pandemic. Refer to “Significant Changes in Leases in Fiscal 2020” section below for more information.

(2)Non-cash lease assets obtained in exchange for lease liabilities were higher in fiscal 2020 primarily due to the new and assumed operating and finance leases from the Chili’s restaurant acquisition and the new Chili’s finance lease for table-top devices. Refer to Note 17 - Fiscal 2020 Chili's Restaurant Acquisition and “Significant Changes in Leases in the Period” section below for more information.

Fiscal Years Ended

June 30, 2021

June 24, 2020

Finance Leases

Operating Leases

Finance Leases

Operating Leases

Weighted average remaining lease term

8.5 years

11.0 years

9.4 years

11.5 years

Weighted average discount rate

5.4

5.6

5.9

5.7

Finance leases and Operating leases total future lease payments represent the contractual obligations due under the lease agreements, including cancellable option periods where we are reasonably assured to exercise the options. As of June 30, 2021, the future minimum lease payments on finance and operating leases, as well as sublease income were as follows:


	June 30, 2021
Fiscal Year	Finance Leases		Operating Leases		Sublease Income
2022	$	27.4	$	155.9	$	(3.2)
2023	26.6		163.3		(2.6)
2024	17.0		153.8		(1.8)
2025	14.2		144.1		(1.8)
2026	11.5		130.1		(1.3)
Thereafter	56.3		770.5		(3.5)
Total future lease payments(1)	153.0		1,517.7		$	(14.2)
Less: Imputed interest	31.7		413.3
Present value of lease liability	$	121.3	$	1,104.4

(1)Total future lease payments as of June 30, 2021 included non-cancelable lease commitments of $132.7 million for finance leases and $1,044.9 million for operating leases.

In fiscal 2021, we executed six leases for new Chili’s locations with undiscounted fixed payments over the initial term of $20.8 million. These leases are expected to commence in the next 12 months and are expected to have an economic lease term of 20 years. These leases will commence when the landlords make the property available to us for new restaurant construction. We will assess the reasonably certain lease term at the lease commencement date.

In the first quarter of fiscal 2020, as part of the Chili’s restaurant acquisition, we assumed and entered into 90 new operating leases. The leases were recorded net of purchase price accounting adjustments and prepaid rent. Additionally related to this transaction, we entered into 12 new finance leases with the initial terms of approximately 11 years, plus renewal options. Refer to Note 17 - Fiscal 2020 Chili's Restaurant Acquisition for more information.

In the first quarter of fiscal 2020, we executed one finance lease for Chili’s table-top devices with an initial term of 3 years, beginning once all devices had been received, plus one 3-year renewal option. We received all the table-top devices by the end of the fourth quarter of fiscal 2020.

In response to the COVID-19 pandemic, during the fourth quarter of fiscal 2020, certain landlords provided temporary rent concessions primarily resulting in the deferral of rent payments until future periods. We accounted for these rent deferrals as modifications under ASC 842 which were included in our June 24, 2020 lease balances.

In fiscal 2019, we completed sale leaseback transactions of 152 restaurant properties which were sold for aggregate consideration of $495.0 million. Of the transactions completed, 151 were Chili’s properties, and one was a Maggiano’s property. The total gain was $309.7 million and the net proceeds from these sale leaseback transactions were used to repay borrowings on our revolving credit facility.

In fiscal 2019, under the previous lease standard ASC 840, we recognized the portion of the gross gain in excess of the present value of the future minimum lease payments, and deferred the remainder of the gain to be recognized straight-line in proportion to the operating lease terms. In the fiscal year ended June 26, 2019, $35.2 million of the gain, less transaction costs incurred of $7.9 million related to professional services, legal and accounting fees, was recognized to Other (gains) and charges in the Consolidated Statements of Comprehensive Income. The deferred gain balance was eliminated through the cumulative effect adjustment to Retained earnings effective June 27, 2019, the first day of fiscal 2020, upon the adoption of ASC 842.