LEASES

3 Months Ended

Sep. 28, 2022

We typically lease our restaurant facilities through ground leases (where we lease land only, but construct the building and improvements) or retail leases (where we lease the land/retail space and building). In addition to our restaurant facilities, we also lease our corporate headquarters location and certain equipment.

Lease Amounts Included in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited)

The components of lease expenses included in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) were as follows:


	Thirteen Week Periods Ended
		September 28, 2022		September 29, 2021
Operating lease expenses (amortization and interest)		$	45.1	$	41.4
Variable lease cost		15.6		15.1
Finance lease amortization		5.2		5.6
Finance lease interest		1.1		1.6
Short-term lease cost		0.1		0.1
Sublease income		(0.9)		(1.1)
Total lease costs, net		$	66.2	$	62.7

Pre-Commencement Leases

As of the end of the first quarter of fiscal 2023, we have 11 pre-commencement leases for new Chili’s locations with undiscounted fixed payments of $15.8 million over the initial term. 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.