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LEASES | 9 Months Ended
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Jul. 10, 2022
Leases [Abstract] |
LEASES | LEASES Nature of leases — We own restaurant sites and we also lease restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance, and common area maintenance, which are excluded from the measurement of the lease liability. As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees in connection with refranchising transactions. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” The following table presents rental income (in thousands):
| Quarter |  | Year-to-date
| July 10, 2022 |  | July 4, 2021 |  | July 10, 2022 |  | July 4, 2021
Operating lease income - franchise | $ | 53,703 |  |  | $ | 53,762 |  |  | $ | 178,048 |  |  | $ | 180,146 |
Variable lease income - franchise | 26,274 |  |  | 26,836 |  |  | 81,556 |  |  | 82,102 |
Amortization of favorable and unfavorable lease contracts, net | 91 |  |  | — |  |  | 119 |  |  | — |
Franchise rental revenues | $ | 80,068 |  |  | $ | 80,598 |  |  | $ | 259,723 |  |  | $ | 262,248 |
Operating lease income - closed restaurants and other (1) | $ | 1,663 |  |  | $ | 1,377 |  |  | $ | 4,728 |  |  | $ | 4,602 |
____________________________ (1)Primarily relates to closed restaurant properties included in “Other operating expenses, net” in our condensed consolidated statements of earnings. The following table presents as of July 10, 2022, the annual maturities of our lease liabilities (in thousands):
| Finance Leases |  | Operating Leases
Fiscal year: |  |  |
Remainder of 2022 | $ | 244 |  |  | $ | 55,942 |
2023 | 972 |  |  | 227,605 |
2024 | 399 |  |  | 191,112 |
2025 | 39 |  |  | 185,347 |
2026 | 27 |  |  | 168,451 |
Thereafter | 26 |  |  | 874,345 |
Total future lease payments (1) | $ | 1,707 |  |  | $ | 1,702,802 |
Less imputed interest | (84) |  |  | (362,768) |
Present value of lease liabilities | $ | 1,623 |  |  | $ | 1,340,034 |
Less current portion | (929) |  |  | (173,057) |
Long-term lease obligations | $ | 694 |  |  | $ | 1,166,977 |
____________________________ (1)Total future lease payments include non-cancellable commitments of $1.7 million for finance leases and $1,468.4 million for operating leases.

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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