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Leases (Tables)
 9 Months Ended
Sep. 29, 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
 
SEPTEMBER 29, 2019
Operating lease right-of-use assets
Operating lease right-of-use assets
 
$
1,262,449

Finance lease right-of-use assets (1)
Property, fixtures and equipment, net
 
2,419

Total lease assets, net
 
 
$
1,264,868

 
 
 
 
Current operating lease liabilities (2)
Accrued and other current liabilities
 
$
170,849

Current finance lease liabilities
Current portion of long-term debt
 
1,498

Non-current operating lease liabilities
Non-current operating lease liabilities
 
1,273,904

Non-current finance lease liabilities
Long-term debt, net
 
1,204

Total lease liabilities
 
 
$
1,447,455

________________
(1)
Net of accumulated amortization of $1.0 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 (Loss) Income for the periods indicated:
 
CONSOLIDATED INCOME STATEMENT CLASSIFICATION
 
THIRTEEN WEEKS ENDED
 
THIRTY-NINE WEEKS ENDED
(dollars in thousands)
 
SEPTEMBER 29, 2019
 
SEPTEMBER 29, 2019
Operating leases (1)
Other restaurant operating
 
$
45,948

 
$
136,260

Variable lease cost
Other restaurant operating
 
933

 
2,498

Finance leases
 
 
 
 
 
Amortization of leased assets
Depreciation and amortization
 
365

 
1,049

Interest on lease liabilities
Interest expense, net
 
64

 
209

Sublease revenue (2)
Franchise and other revenues
 
(1,747
)
 
(4,853
)
Lease costs, net (3)
 
 
$
45,563

 
$
135,163

________________
(1)
Excludes rent expense for office facilities and Company-owned closed or subleased properties for the thirteen and thirty-nine weeks ended September 29, 2019 of $3.8 million and $11.0 million, respectively, which is included in General and administrative expense and certain supply chain related rent expense of $0.3 million and $0.9 million, respectively, which is included in Cost of sales.
(2)
Excludes rental income from Company-owned properties for the thirteen and thirty-nine weeks ended September 29, 2019 of $0.4 million and $1.8 million, respectively.
(3)
During the thirteen and thirty-nine weeks ended September 30, 2018, the Company recorded rent expense of $45.8 million and $138.8 million, respectively, including variable rent expense of $1.1 million and $3.4 million, respectively, and sublease revenue of $1.6 million and $4.7 million, respectively.
Lessee, operating lease, liability, maturity
As of September 29, 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)
$
178,221

 
$
1,558

 
$
(6,126
)
Year 2
191,533

 
1,051

 
(6,239
)
Year 3
186,926

 
331

 
(6,039
)
Year 4
183,602

 
4

 
(5,980
)
Year 5
177,890

 
4

 
(5,871
)
Thereafter
1,729,022

 
2

 
(64,988
)
Total minimum lease payments (receipts) (2)
$
2,647,194

 
$
2,950

 
$
(95,243
)
Less: Interest
(1,202,441
)
 
(248
)
 
 
Present value of future lease payments
$
1,444,753

 
$
2,702

 
 
____________________
(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 $116.3 million of signed operating leases that have not yet commenced.
Finance lease, liability, maturity
As of September 29, 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)
$
178,221

 
$
1,558

 
$
(6,126
)
Year 2
191,533

 
1,051

 
(6,239
)
Year 3
186,926

 
331

 
(6,039
)
Year 4
183,602

 
4

 
(5,980
)
Year 5
177,890

 
4

 
(5,871
)
Thereafter
1,729,022

 
2

 
(64,988
)
Total minimum lease payments (receipts) (2)
$
2,647,194

 
$
2,950

 
$
(95,243
)
Less: Interest
(1,202,441
)
 
(248
)
 
 
Present value of future lease payments
$
1,444,753

 
$
2,702

 
 
____________________
(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 $116.3 million of signed operating leases that have not yet commenced.
Lessee, weighted average remaining lease term and weighted average discount rate
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:
 
SEPTEMBER 29, 2019
Weighted-average remaining lease term (1):
 
Operating leases
14.6 years

Finance leases
2.1 years

Weighted-average discount rate (2):
 
Operating leases
8.56
%
Finance leases
9.07
%
____________________
(1)
Includes lease renewal options that are reasonably certain of exercise.
(2)
Based on the Company’s incremental borrowing rate at lease commencement.
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:
 
THIRTY-NINE WEEKS ENDED
(dollars in thousands)
SEPTEMBER 29, 2019
Cash flows from operating activities:
 
Cash paid for amounts included in the measurement of operating lease liabilities
$
143,630
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)
SEPTEMBER 29, 2019
Land
$
10,585

 
 
Buildings and building improvements
$
12,823

Less: accumulated depreciation
(6,239
)
Buildings and building improvements, net
$
6,584