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Leases | 6 Months Ended
--- | ---
Jun. 30, 2024
Leases [Abstract] |
Leases | 3. Leases Lessor Operating Leases The Company subleases certain retail space to our franchisees in the UK, which are primarily operating leases. At June 30, 2024, we leased and subleased approximately 350 Papa Johns restaurants to franchisees in the UK. The initial lease terms on the franchised sites in the UK are generally 15 years. The Company has the option to negotiate an extension toward the end of the lease term at the landlord’s discretion. The initial lease terms of the franchisee subleases are generally five to ten years. Rental income, primarily derived from properties leased and subleased to franchisees in the UK, is recognized on a straight-line basis over the respective operating lease terms. The Company recognized total sublease income of $2.1 million and $4.4 million for the three and six months ended June 30, 2024, respectively, and $2.7 million and $5.6 million for the three and six months ended June 25, 2023, respectively, within Other revenues in the Condensed Consolidated Statements of Operations. Lease Guarantees As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants, we are contingently liable for payment of 47 Domestic leases. These leases have varying terms, the latest of which expires in 2036. As of June 30, 2024, the estimated maximum amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessees was $6.6 million. This contingent liability is not included in the Condensed Consolidated Balance Sheets as it is not probable to occur. The fair value of the guarantee is not material. Supplemental Cash Flow & Other Information Supplemental cash flow information related to leases for the periods reported is as follows:
|  | Six Months Ended
(In thousands) |  | June 30, 2024 |  | June 25, 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from finance leases |  | $ | 759 |  |  | $ | 702 |
Financing cash flows from finance leases |  | 4,796 |  |  | 3,669 |
Operating cash flows from operating leases (a) |  | 19,710 |  |  | 18,738 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | 2,988 |  |  | 14,129 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 14,343 |  |  | 12,128 |
Cash received from sublease income |  | 3,355 |  |  | 5,278 |
___________________________________ (a) Included within the change in Other assets and liabilities within the Condensed Consolidated Statements of Cash Flows offset by non-cash operating lease right-of-use asset amortization and lease liability accretion.
Leases | 3. Leases Lessor Operating Leases The Company subleases certain retail space to our franchisees in the UK, which are primarily operating leases. At June 30, 2024, we leased and subleased approximately 350 Papa Johns restaurants to franchisees in the UK. The initial lease terms on the franchised sites in the UK are generally 15 years. The Company has the option to negotiate an extension toward the end of the lease term at the landlord’s discretion. The initial lease terms of the franchisee subleases are generally five to ten years. Rental income, primarily derived from properties leased and subleased to franchisees in the UK, is recognized on a straight-line basis over the respective operating lease terms. The Company recognized total sublease income of $2.1 million and $4.4 million for the three and six months ended June 30, 2024, respectively, and $2.7 million and $5.6 million for the three and six months ended June 25, 2023, respectively, within Other revenues in the Condensed Consolidated Statements of Operations. Lease Guarantees As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants, we are contingently liable for payment of 47 Domestic leases. These leases have varying terms, the latest of which expires in 2036. As of June 30, 2024, the estimated maximum amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessees was $6.6 million. This contingent liability is not included in the Condensed Consolidated Balance Sheets as it is not probable to occur. The fair value of the guarantee is not material. Supplemental Cash Flow & Other Information Supplemental cash flow information related to leases for the periods reported is as follows:
|  | Six Months Ended
(In thousands) |  | June 30, 2024 |  | June 25, 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from finance leases |  | $ | 759 |  |  | $ | 702 |
Financing cash flows from finance leases |  | 4,796 |  |  | 3,669 |
Operating cash flows from operating leases (a) |  | 19,710 |  |  | 18,738 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | 2,988 |  |  | 14,129 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 14,343 |  |  | 12,128 |
Cash received from sublease income |  | 3,355 |  |  | 5,278 |
___________________________________ (a) Included within the change in Other assets and liabilities within the Condensed Consolidated Statements of Cash Flows offset by non-cash operating lease right-of-use asset amortization and lease liability accretion.
Leases | 3. Leases Lessor Operating Leases The Company subleases certain retail space to our franchisees in the UK, which are primarily operating leases. At June 30, 2024, we leased and subleased approximately 350 Papa Johns restaurants to franchisees in the UK. The initial lease terms on the franchised sites in the UK are generally 15 years. The Company has the option to negotiate an extension toward the end of the lease term at the landlord’s discretion. The initial lease terms of the franchisee subleases are generally five to ten years. Rental income, primarily derived from properties leased and subleased to franchisees in the UK, is recognized on a straight-line basis over the respective operating lease terms. The Company recognized total sublease income of $2.1 million and $4.4 million for the three and six months ended June 30, 2024, respectively, and $2.7 million and $5.6 million for the three and six months ended June 25, 2023, respectively, within Other revenues in the Condensed Consolidated Statements of Operations. Lease Guarantees As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants, we are contingently liable for payment of 47 Domestic leases. These leases have varying terms, the latest of which expires in 2036. As of June 30, 2024, the estimated maximum amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessees was $6.6 million. This contingent liability is not included in the Condensed Consolidated Balance Sheets as it is not probable to occur. The fair value of the guarantee is not material. Supplemental Cash Flow & Other Information Supplemental cash flow information related to leases for the periods reported is as follows:
|  | Six Months Ended
(In thousands) |  | June 30, 2024 |  | June 25, 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from finance leases |  | $ | 759 |  |  | $ | 702 |
Financing cash flows from finance leases |  | 4,796 |  |  | 3,669 |
Operating cash flows from operating leases (a) |  | 19,710 |  |  | 18,738 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | 2,988 |  |  | 14,129 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 14,343 |  |  | 12,128 |
Cash received from sublease income |  | 3,355 |  |  | 5,278 |
___________________________________ (a) Included within the change in Other assets and liabilities within the Condensed Consolidated Statements of Cash Flows offset by non-cash operating lease right-of-use asset amortization and lease liability accretion.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
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