Leases (Tables)

9 Months Ended

Sep. 29, 2019

Leases

Schedule of average terms of lease portfolios

	Average lease term
Domestic Company-owned restaurants	Five years, plus at least one renewal
United Kingdom franchise-owned restaurants	15 years
Domestic commissary locations	10 years, plus at least one renewal
Domestic and international tractors and trailers	Five to seven years
Domestic and international commissary and office equipment	Three to five years

Schedule of operating lease assets and liabilities

The following schedule details the total right-of-use assets and lease liabilities on the Condensed Consolidated Balance Sheet as of September 29, 2019 and the date of adoption on December 31, 2018 (in thousands):

			September 29,		December 31,
Leases	Classification		2019		2018
Assets
Finance lease assets, net	Finance lease right-of-use assets, net	$	9,870	$	—
Operating lease assets, net	Operating lease right-of-use assets		144,881		161,027
Operating lease assets, net	Assets held for sale		2,336		—
Total lease assets		$	157,087	$	161,027
Liabilities
Current finance lease liabilities	Current finance lease liabilities	$	1,748	$	—
Current operating lease liabilities	Current operating lease liabilities		23,701		25,348
Noncurrent finance lease liabilities	Long-term finance lease liabilities		8,083		—
Noncurrent operating lease liabilities	Long-term operating lease liabilities		121,320		137,511
Operating lease liabilities held for sale	Accrued expenses and other current liabilities		2,420		—
Total lease liabilities		$	157,272	$	162,859

Schedule of components of lease expense

		Three Months Ended		Nine Months Ended
(in thousands)		September 29, 2019		September 29, 2019
Finance lease:
Amortization of right-of-use assets	$	333	$	333
Interest on lease liabilities		108		108
Operating lease:
Operating lease cost		10,402		31,816
Short-term lease cost		679		2,308
Variable lease cost		2,203		6,945
Total lease costs	$	13,725	$	41,510
Sublease income		(2,613)		(7,778)
Total lease costs, net of sublease income	$	11,112	$	33,732

Schedule of future minimum lease payments and sublease income under contractually-obligated leases

Future minimum lease payments and sublease income under contractually-obligated leases as of September 29, 2019 were as follows (in thousands):

Fiscal Year	Finance Lease Costs		Operating Lease Costs		Expected Sublease Income
Remainder of 2019	$	579	$	7,027	$	2,195
2020		2,315		35,946		8,772
2021		2,315		31,420		8,419
2022		2,315		26,005		8,073
2023		2,315		20,345		7,782
Thereafter		1,605		72,167		47,687
Total future minimum lease payments		11,444		192,910		82,928
Less imputed interest		(1,613)		(45,469)		—
Less lease liabilities held for sale (1)		—		(2,420)		—
Total present value of Lease Liabilities	$	9,831	$	145,021	$	82,928

(1) Operating lease liabilities of $2.4 million are separately reported in the Company’s Condensed Consolidated Balance Sheets under the caption “Accrued expenses and other current liabilities”.

Future minimum lease payments and sublease income under contractually-obligated leases as of December 30, 2018 were as follows (in thousands):

Fiscal Year	Operating Lease Costs		Expected Sublease Income
2019	$	40,834	$	8,079
2020		36,631		8,061
2021		31,159		7,818
2022		25,188		7,462
2023		18,694		7,182
Thereafter		57,304		42,518
Total future minimum lease payments	$	209,810	$	81,120

Schedule of supplemental cash flow information

Supplemental cash flow information related to leases for the periods reported is as follows:

		Nine Months Ended
(in thousands, except for weighted-average amounts)		September 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	108
Financing cash flows from finance leases		371
Operating cash flows from operating leases		30,342
Right-of-use assets obtained in exchange for new finance lease liabilities		10,203
Right-of-use assets obtained in exchange for new operating lease liabilities		13,335
Cash received from sublease income		7,196
Weighted-average remaining lease term (in years):
Finance leases		5.03
Operating leases		6.98
Weighted-average discount rate:
Finance leases		6.40%
Operating leases		6.93%