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Leases (Tables)
 6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Assets and liabilities, lessee
The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheet as of the period indicated:
(dollars in thousands)
CONSOLIDATED BALANCE SHEET CLASSIFICATION
 
JUNE 30, 2019
Operating lease right-of-use assets
Operating lease right-of-use assets
 
$
1,275,303

Finance lease right-of-use assets (1)
Property, fixtures and equipment, net
 
2,821

Total lease assets, net
 
 
$
1,278,124

 
 
 
 
Current operating lease liabilities (2)
Accrued and other current liabilities
 
$
171,263

Current finance lease liabilities
Current portion of long-term debt
 
1,656

Non-current operating lease liabilities
Non-current operating lease liabilities
 
1,284,574

Non-current finance lease liabilities
Long-term debt, net
 
1,471

 
 
 
$
1,458,964

________________
(1)
Net of accumulated amortization of $0.7 million.
(2)
Excludes accrued contingent percentage rent.
Lease, cost
Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated:
 
CONSOLIDATED INCOME STATEMENT CLASSIFICATION
 
THIRTEEN WEEKS ENDED
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
 
JUNE 30, 2019
 
JUNE 30, 2019
Operating leases (1)
Other restaurant operating
 
$
45,079

 
$
90,312

Variable lease cost
Other restaurant operating
 
746

 
1,565

Finance leases
 
 
 
 
 
Amortization of leased assets
Depreciation and amortization
 
360

 
684

Interest on lease liabilities
Interest expense, net
 
72

 
145

Sublease revenue (2)
Franchise and other revenues
 
(1,792
)
 
(3,106
)
Lease costs, net (3)
 
 
$
44,465

 
$
89,600

________________
(1)
Excludes rent expense for office facilities and Company-owned closed or subleased properties for the thirteen and twenty-six weeks ended June 30, 2019 of $3.7 million and $7.2 million, respectively, which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million and $0.6 million, respectively, which is included in Cost of sales.
(2)
Excludes rental income from Company-owned properties for the thirteen and twenty-six weeks ended June 30, 2019 of $0.7 million and $1.4 million, respectively.
(3)
During the thirteen and twenty-six weeks ended July 1, 2018, the Company recorded rent expense of $45.7 million and $93.0 million, respectively, including variable rent expense of $1.0 million and $2.3 million, respectively, and sublease revenue of $1.5 million and $3.1 million, respectively.
The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company’s leases as of the period indicated:
 
JUNE 30, 2019
Weighted-average remaining lease term:
 
Operating leases
14.6 years

Finance leases
2.3 years

Weighted-average discount rate (1):
 
Operating leases
8.58
%
Finance leases
9.11
%
____________________
(1)
Based on the Company’s incremental borrowing rate at lease commencement.
Lessee, operating lease, liability, maturity
As of June 30, 2019, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands)
OPERATING LEASES
 
FINANCE LEASES
 
SUBLEASE REVENUES
Year 1 (1)
$
178,680

 
$
1,705

 
$
(5,956
)
Year 2
192,056

 
1,202

 
(6,050
)
Year 3
187,827

 
521

 
(5,980
)
Year 4
184,545

 
7

 
(5,967
)
Year 5
179,329

 
5

 
(5,908
)
Thereafter
1,753,411

 
3

 
(66,453
)
Total minimum lease payments (receipts) (2)
$
2,675,848

 
$
3,443

 
$
(96,314
)
Less: Interest
(1,220,011
)
 
(316
)
 
 
Present value of future lease payments (receipts)
$
1,455,837

 
$
3,127

 
 
____________________
(1)
Net of operating lease prepaid rent of $14.7 million.
(2)
Includes $1.0 billion related to options to extend operating lease terms and excludes $112.3 million of signed operating leases that have not yet commenced.
Finance lease, liability, maturity
As of June 30, 2019, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands)
OPERATING LEASES
 
FINANCE LEASES
 
SUBLEASE REVENUES
Year 1 (1)
$
178,680

 
$
1,705

 
$
(5,956
)
Year 2
192,056

 
1,202

 
(6,050
)
Year 3
187,827

 
521

 
(5,980
)
Year 4
184,545

 
7

 
(5,967
)
Year 5
179,329

 
5

 
(5,908
)
Thereafter
1,753,411

 
3

 
(66,453
)
Total minimum lease payments (receipts) (2)
$
2,675,848

 
$
3,443

 
$
(96,314
)
Less: Interest
(1,220,011
)
 
(316
)
 
 
Present value of future lease payments (receipts)
$
1,455,837

 
$
3,127

 
 
____________________
(1)
Net of operating lease prepaid rent of $14.7 million.
(2)
Includes $1.0 billion related to options to extend operating lease terms and excludes $112.3 million of signed operating leases that have not yet commenced.
Cash flow, operating activities, lessee
The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the period indicated:
 
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JUNE 30, 2019
Cash flows from operating activities:
 
Cash paid for amounts included in the measurement of operating lease liabilities
$
95,532
Schedule of property subject to or available for operating leases The following table is a summary of assets leased to third parties as of the period indicated:
(dollars in thousands)
JUNE 30, 2019
Land (1)
$
15,247

 
 
Buildings and building improvements
$
23,120

Less: accumulated depreciation
(10,210
)
Buildings and building improvements, net (1)
$
12,910


____________________
(1)
Includes $5.6 million of Land and $6.5 million of Building and building improvements, net recorded within assets held for sale as of June 30, 2019.