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Leases (Tables) | 9 Months Ended
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Oct. 03, 2021
Leases [Abstract] |
Lease, Cost | The components of lease cost are as follows:
| Three Months Ended |  | Nine Months Ended
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020
Finance lease cost: |  |  |  |  |  |  |
Amortization of finance lease assets | $ | 3,543 |  |  | $ | 3,471 |  |  | $ | 10,302 |  |  | $ | 9,995 |
Interest on finance lease liabilities | 10,371 |  |  | 10,244 |  |  | 30,931 |  |  | 30,462 |
| 13,914 |  |  | 13,715 |  |  | 41,233 |  |  | 40,457 |
Operating lease cost | 22,388 |  |  | 23,170 |  |  | 68,761 |  |  | 68,304 |
Variable lease cost (a) | 16,635 |  |  | 15,548 |  |  | 48,406 |  |  | 43,766 |
Short-term lease cost | 1,125 |  |  | 1,006 |  |  | 3,721 |  |  | 3,327 |
Total operating lease cost (b) | 40,148 |  |  | 39,724 |  |  | 120,888 |  |  | 115,397 |
Total lease cost | $ | 54,062 |  |  | $ | 53,439 |  |  | $ | 162,121 |  |  | $ | 155,854 |
_______________ (a)Includes expenses for executory costs of $10,016 and $9,326 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,166 and $28,526 for the nine months ended October 3, 2021 and September 27, 2020, respectively, for which the Company is reimbursed by sublessees. (b)Includes $34,396 and $32,421 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $101,011 and $92,975 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $5,213 and $6,651 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $18,005 and $20,315 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Schedule of Supplemental Cash Flow and Non-Cash Information Related to Leases | The following table includes supplemental cash flow and non-cash information related to leases:
| Nine Months Ended
| October 3, 2021 |  | September 27, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from finance leases | $ | 31,608 |  |  | $ | 28,689 |
Operating cash flows from operating leases | 69,476 |  |  | 62,026 |
Financing cash flows from finance leases | 9,021 |  |  | 5,850 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Finance lease liabilities | 43,277 |  |  | 24,617 |
Operating lease liabilities | 11,404 |  |  | 12,149 |
Schedule of Supplemental Information Related to Leases | The following table includes supplemental information related to leases:
| October 3, 2021 |  | January 3, 2021
Weighted-average remaining lease term (years): |  |  |
Finance leases | 15.8 |  | 16.2
Operating leases | 14.2 |  | 14.6
Weighted average discount rate: |  |  |
Finance leases | 9.19 | % |  | 9.54 | %
Operating leases | 5.01 | % |  | 5.06 | %
Supplemental balance sheet information: |  |  |
Finance lease assets, gross | $ | 271,075 |  |  | $ | 261,308 |
Accumulated amortization | (60,415) |  |  | (55,155) |
Finance lease assets | 210,660 |  |  | 206,153 |
Operating lease assets | 783,986 |  |  | 821,480 |
Finance Lease, Liability, Maturity | The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of October 3, 2021:
| Finance Leases |  | Operating Leases
Fiscal Year | Company-Operated |  | Franchise and Other |  | Company-Operated |  | Franchise and Other
2021 (a) (b) | $ | 1,398 |  |  | $ | 13,934 |  |  | $ | 3,504 |  |  | $ | 18,313 |
2022 | 3,699 |  |  | 51,912 |  |  | 14,412 |  |  | 73,572 |
2023 | 3,644 |  |  | 53,569 |  |  | 14,726 |  |  | 73,226 |
2024 | 3,712 |  |  | 54,001 |  |  | 14,738 |  |  | 73,145 |
2025 | 3,787 |  |  | 54,496 |  |  | 14,633 |  |  | 72,829 |
Thereafter | 46,140 |  |  | 682,798 |  |  | 141,258 |  |  | 732,276 |
Total minimum payments | $ | 62,380 |  |  | $ | 910,710 |  |  | $ | 203,271 |  |  | $ | 1,043,361 |
Less interest | (22,694) |  |  | (405,706) |  |  | (58,455) |  |  | (312,148) |
Present value of minimum lease payments (c) (d) | $ | 39,686 |  |  | $ | 505,004 |  |  | $ | 144,816 |  |  | $ | 731,213 |
_______________ (a)Represents future minimum rental payments for non-cancelable leases for the remainder of 2021. (b)In addition to the 2021 future minimum rental payments, the Company expects to pay $1,038 primarily during 2021 related to rent deferrals obtained due to the COVID-19 pandemic. The related payable is included in “Accrued expenses and other current liabilities.” (c)The present value of minimum finance lease payments of $15,915 and $528,775 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively. (d)The present value of minimum operating lease payments of $45,541 and $830,488 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Lessee, Operating Lease, Liability, Maturity | The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of October 3, 2021:
| Finance Leases |  | Operating Leases
Fiscal Year | Company-Operated |  | Franchise and Other |  | Company-Operated |  | Franchise and Other
2021 (a) (b) | $ | 1,398 |  |  | $ | 13,934 |  |  | $ | 3,504 |  |  | $ | 18,313 |
2022 | 3,699 |  |  | 51,912 |  |  | 14,412 |  |  | 73,572 |
2023 | 3,644 |  |  | 53,569 |  |  | 14,726 |  |  | 73,226 |
2024 | 3,712 |  |  | 54,001 |  |  | 14,738 |  |  | 73,145 |
2025 | 3,787 |  |  | 54,496 |  |  | 14,633 |  |  | 72,829 |
Thereafter | 46,140 |  |  | 682,798 |  |  | 141,258 |  |  | 732,276 |
Total minimum payments | $ | 62,380 |  |  | $ | 910,710 |  |  | $ | 203,271 |  |  | $ | 1,043,361 |
Less interest | (22,694) |  |  | (405,706) |  |  | (58,455) |  |  | (312,148) |
Present value of minimum lease payments (c) (d) | $ | 39,686 |  |  | $ | 505,004 |  |  | $ | 144,816 |  |  | $ | 731,213 |
_______________ (a)Represents future minimum rental payments for non-cancelable leases for the remainder of 2021. (b)In addition to the 2021 future minimum rental payments, the Company expects to pay $1,038 primarily during 2021 related to rent deferrals obtained due to the COVID-19 pandemic. The related payable is included in “Accrued expenses and other current liabilities.” (c)The present value of minimum finance lease payments of $15,915 and $528,775 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively. (d)The present value of minimum operating lease payments of $45,541 and $830,488 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Lease, Income | The components of lease income are as follows:
| Three Months Ended |  | Nine Months Ended
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020
Sales-type and direct-financing leases: |  |  |  |  |  |  |
Selling profit | $ | 705 |  |  | $ | 182 |  |  | $ | 4,244 |  |  | $ | 1,379 |
Interest income (a) | 7,786 |  |  | 7,296 |  |  | 22,861 |  |  | 21,804 |
Operating lease income | 45,834 |  |  | 43,510 |  |  | 134,312 |  |  | 130,514 |
Variable lease income | 16,612 |  |  | 15,211 |  |  | 47,878 |  |  | 42,920 |
Franchise rental income (b) | $ | 62,446 |  |  | $ | 58,721 |  |  | $ | 182,190 |  |  | $ | 173,434 |
_______________ (a)Included in “Interest expense, net.” (b)Includes sublease income of $46,102 and $43,122 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $134,597 and $126,653 for the nine months ended October 3, 2021 and September 27, 2020, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,087 and $9,379 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,156 and $28,538 for the nine months ended October 3, 2021 and September 27, 2020, respectively.
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of October 3, 2021:
| Sales-Type and Direct Financing Leases |  | Operating Leases
Fiscal Year | Subleases |  | Owned Properties |  | Subleases |  | Owned Properties
2021 (a) (b) | $ | 8,409 |  |  | $ | 1,407 |  |  | $ | 28,841 |  |  | $ | 13,942 |
2022 | 34,188 |  |  | 2,610 |  |  | 116,068 |  |  | 56,305 |
2023 | 35,247 |  |  | 2,656 |  |  | 116,795 |  |  | 56,614 |
2024 | 37,248 |  |  | 2,667 |  |  | 116,962 |  |  | 57,720 |
2025 | 36,149 |  |  | 2,784 |  |  | 116,443 |  |  | 58,323 |
Thereafter | 479,695 |  |  | 32,057 |  |  | 1,172,444 |  |  | 748,781 |
Total future minimum receipts | 630,936 |  |  | 44,181 |  |  | $ | 1,667,553 |  |  | $ | 991,685 |
Unearned interest income | (341,031) |  |  | (21,892) |  |  |  |  |
Net investment in sales-type and direct financing leases (c) | $ | 289,905 |  |  | $ | 22,289 |  |  |  |  |
_______________ (a)Represents future minimum rental receipts for non-cancelable leases for the remainder of 2021. (b)In addition to the 2021 future minimum rental receipts, the Company expects to collect $273 primarily during 2021 related to its offer to franchisees to defer base rent payments in response to the COVID-19 pandemic. The related receivable is included in “Accounts and notes receivable, net.” (c)The present value of minimum sales-type and direct financing rental receipts of $6,952 and $305,242 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $535.
Lessor, Operating Lease, Payment to be Received, Maturity | The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of October 3, 2021:
| Sales-Type and Direct Financing Leases |  | Operating Leases
Fiscal Year | Subleases |  | Owned Properties |  | Subleases |  | Owned Properties
2021 (a) (b) | $ | 8,409 |  |  | $ | 1,407 |  |  | $ | 28,841 |  |  | $ | 13,942 |
2022 | 34,188 |  |  | 2,610 |  |  | 116,068 |  |  | 56,305 |
2023 | 35,247 |  |  | 2,656 |  |  | 116,795 |  |  | 56,614 |
2024 | 37,248 |  |  | 2,667 |  |  | 116,962 |  |  | 57,720 |
2025 | 36,149 |  |  | 2,784 |  |  | 116,443 |  |  | 58,323 |
Thereafter | 479,695 |  |  | 32,057 |  |  | 1,172,444 |  |  | 748,781 |
Total future minimum receipts | 630,936 |  |  | 44,181 |  |  | $ | 1,667,553 |  |  | $ | 991,685 |
Unearned interest income | (341,031) |  |  | (21,892) |  |  |  |  |
Net investment in sales-type and direct financing leases (c) | $ | 289,905 |  |  | $ | 22,289 |  |  |  |  |
_______________ (a)Represents future minimum rental receipts for non-cancelable leases for the remainder of 2021. (b)In addition to the 2021 future minimum rental receipts, the Company expects to collect $273 primarily during 2021 related to its offer to franchisees to defer base rent payments in response to the COVID-19 pandemic. The related receivable is included in “Accounts and notes receivable, net.” (c)The present value of minimum sales-type and direct financing rental receipts of $6,952 and $305,242 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $535.
Schedule of Property Subject To Operating Lease | Properties owned by the Company and leased to franchisees and other third parties under operating leases include:
| October 3, 2021 |  | January 3, 2021
Land | $ | 280,767 |  |  | $ | 279,956 |
Buildings and improvements | 307,593 |  |  | 309,605 |
Restaurant equipment | 1,701 |  |  | 1,701 |
| 590,061 |  |  | 591,262 |
Accumulated depreciation and amortization | (179,439) |  |  | (170,722) |
| $ | 410,622 |  |  | $ | 420,540 |

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- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=123408670&loc=SL77918686-209980 + Details
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