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Leases

12 Months Ended

Dec. 30, 2020

Leases [Abstract]

Leases

Leases

Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:

									Fiscal Year Ended
			Classification						December 30, 2020						December 25, 2019
									(In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets			Depreciation and amortization						$	1,870					$	2,991
Interest on lease liabilities			Interest expense, net						3,129						4,536
Operating lease costs:
Operating lease costs - company			Occupancy						6,432						8,253
Operating lease costs - franchise			Costs of franchise and license revenue						18,682						17,097
Operating lease costs - general and administrative			General and administrative expenses						100						108
Operating lease costs - closed stores			Restructuring charges and exit costs						173						—
Variable lease costs:
Variable lease costs - company			Occupancy						2,854						5,993
Variable lease costs - franchise			Costs of franchise and license revenue						6,102						7,001
Variable lease costs - general and administrative			General and administrative expenses						61						41
Variable lease costs - closed stores			Restructuring charges and exit costs						56						49
Sublease income:
Sublease income - franchise			Franchise and license revenue						(30,925)						(28,986)
Sublease income - closed stores			Restructuring charges and exit costs						(114)						(306)
Total lease costs									$	8,420					$	16,777

Lease terms and discount rates were as follows:

			December 30, 2020						December 25, 2019
Weighted-average remaining lease term (in years):
Finance leases			9.3						9.7
Operating leases			10.7						10.8
Weighted-average discount rate:
Finance leases			23.8		%				23.5		%
Operating leases			5.8		%				5.9		%

The components of lease income were as follows:

									Fiscal Year Ended
			Classification						December 30, 2020						December 25, 2019
									(In thousands)
Lease income
Operating lease income - franchise			Franchise and license revenue						$	33,621					$	28,050
Operating lease income - closed stores			Restructuring charges and exit costs						66						255
Variable lease income - franchise			Franchise and license revenue						8,246						10,464
Variable lease income - closed stores			Restructuring charges and exit costs						48						49
Total lease income									$	41,981					$	38,818

Cash and supplemental noncash amounts were as follows:

						Fiscal Year Ended
						December 30, 2020						December 25, 2019
						(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	3,129					$	4,536
Operating cash flows from operating leases						$	23,511					$	26,329
Financing cash flows from finance leases						$	1,570					$	2,464
Right-of-use assets obtained in exchange for new finance lease liabilities						$	142					$	305
Right-of-use assets obtained in exchange for new operating lease liabilities						$	4,831					$	79,534

Maturities of lease liabilities and receipts in accordance with Topic 842 as of December 30, 2020 were as follows:

			Lease Liabilities												Lease Receipts
			Finance						Operating						Operating
			(In thousands)
2021			$	4,737					$	25,184					$	31,732
2022			4,343						22,381						28,792
2023			3,778						20,146						26,210
2024			3,171						18,621						24,704
2025			3,163						17,453						24,248
Thereafter			19,364						106,039						177,448
Total undiscounted cash flows			38,556						209,824						$	313,134
Less: interest			23,187						55,434
Present value of lease liabilities			15,369						154,390
Less: current lease liabilities			1,839						16,856
Long-term lease liabilities			$	13,530					$	137,534

Rental expense and income in accordance with Topic 840 as of December 26, 2018 was comprised of the following: 

			Fiscal Year Ended
			December 26, 2018
			(In thousands)
Rental expense:
Included as a component of occupancy:
Base rents			$	10,272
Contingent rents			3,074
Included as a component of costs of franchise and license revenue:
Base rents			15,108
Contingent rents			2,629
Total rental expense			$	31,083
Rental income:
Included as a component of franchise and license revenue:
Base rents			$	22,831
Contingent rents			4,662
Total rental income			$	27,493

Leases

Leases

Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:

									Fiscal Year Ended
			Classification						December 30, 2020						December 25, 2019
									(In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets			Depreciation and amortization						$	1,870					$	2,991
Interest on lease liabilities			Interest expense, net						3,129						4,536
Operating lease costs:
Operating lease costs - company			Occupancy						6,432						8,253
Operating lease costs - franchise			Costs of franchise and license revenue						18,682						17,097
Operating lease costs - general and administrative			General and administrative expenses						100						108
Operating lease costs - closed stores			Restructuring charges and exit costs						173						—
Variable lease costs:
Variable lease costs - company			Occupancy						2,854						5,993
Variable lease costs - franchise			Costs of franchise and license revenue						6,102						7,001
Variable lease costs - general and administrative			General and administrative expenses						61						41
Variable lease costs - closed stores			Restructuring charges and exit costs						56						49
Sublease income:
Sublease income - franchise			Franchise and license revenue						(30,925)						(28,986)
Sublease income - closed stores			Restructuring charges and exit costs						(114)						(306)
Total lease costs									$	8,420					$	16,777

Lease terms and discount rates were as follows:

			December 30, 2020						December 25, 2019
Weighted-average remaining lease term (in years):
Finance leases			9.3						9.7
Operating leases			10.7						10.8
Weighted-average discount rate:
Finance leases			23.8		%				23.5		%
Operating leases			5.8		%				5.9		%

The components of lease income were as follows:

									Fiscal Year Ended
			Classification						December 30, 2020						December 25, 2019
									(In thousands)
Lease income
Operating lease income - franchise			Franchise and license revenue						$	33,621					$	28,050
Operating lease income - closed stores			Restructuring charges and exit costs						66						255
Variable lease income - franchise			Franchise and license revenue						8,246						10,464
Variable lease income - closed stores			Restructuring charges and exit costs						48						49
Total lease income									$	41,981					$	38,818

Cash and supplemental noncash amounts were as follows:

						Fiscal Year Ended
						December 30, 2020						December 25, 2019
						(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	3,129					$	4,536
Operating cash flows from operating leases						$	23,511					$	26,329
Financing cash flows from finance leases						$	1,570					$	2,464
Right-of-use assets obtained in exchange for new finance lease liabilities						$	142					$	305
Right-of-use assets obtained in exchange for new operating lease liabilities						$	4,831					$	79,534

Maturities of lease liabilities and receipts in accordance with Topic 842 as of December 30, 2020 were as follows:

			Lease Liabilities												Lease Receipts
			Finance						Operating						Operating
			(In thousands)
2021			$	4,737					$	25,184					$	31,732
2022			4,343						22,381						28,792
2023			3,778						20,146						26,210
2024			3,171						18,621						24,704
2025			3,163						17,453						24,248
Thereafter			19,364						106,039						177,448
Total undiscounted cash flows			38,556						209,824						$	313,134
Less: interest			23,187						55,434
Present value of lease liabilities			15,369						154,390
Less: current lease liabilities			1,839						16,856
Long-term lease liabilities			$	13,530					$	137,534

Rental expense and income in accordance with Topic 840 as of December 26, 2018 was comprised of the following: 

			Fiscal Year Ended
			December 26, 2018
			(In thousands)
Rental expense:
Included as a component of occupancy:
Base rents			$	10,272
Contingent rents			3,074
Included as a component of costs of franchise and license revenue:
Base rents			15,108
Contingent rents			2,629
Total rental expense			$	31,083
Rental income:
Included as a component of franchise and license revenue:
Base rents			$	22,831
Contingent rents			4,662
Total rental income			$	27,493

Leases

Leases

Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:

									Fiscal Year Ended
			Classification						December 30, 2020						December 25, 2019
									(In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets			Depreciation and amortization						$	1,870					$	2,991
Interest on lease liabilities			Interest expense, net						3,129						4,536
Operating lease costs:
Operating lease costs - company			Occupancy						6,432						8,253
Operating lease costs - franchise			Costs of franchise and license revenue						18,682						17,097
Operating lease costs - general and administrative			General and administrative expenses						100						108
Operating lease costs - closed stores			Restructuring charges and exit costs						173						—
Variable lease costs:
Variable lease costs - company			Occupancy						2,854						5,993
Variable lease costs - franchise			Costs of franchise and license revenue						6,102						7,001
Variable lease costs - general and administrative			General and administrative expenses						61						41
Variable lease costs - closed stores			Restructuring charges and exit costs						56						49
Sublease income:
Sublease income - franchise			Franchise and license revenue						(30,925)						(28,986)
Sublease income - closed stores			Restructuring charges and exit costs						(114)						(306)
Total lease costs									$	8,420					$	16,777

Lease terms and discount rates were as follows:

			December 30, 2020						December 25, 2019
Weighted-average remaining lease term (in years):
Finance leases			9.3						9.7
Operating leases			10.7						10.8
Weighted-average discount rate:
Finance leases			23.8		%				23.5		%
Operating leases			5.8		%				5.9		%

The components of lease income were as follows:

									Fiscal Year Ended
			Classification						December 30, 2020						December 25, 2019
									(In thousands)
Lease income
Operating lease income - franchise			Franchise and license revenue						$	33,621					$	28,050
Operating lease income - closed stores			Restructuring charges and exit costs						66						255
Variable lease income - franchise			Franchise and license revenue						8,246						10,464
Variable lease income - closed stores			Restructuring charges and exit costs						48						49
Total lease income									$	41,981					$	38,818

Cash and supplemental noncash amounts were as follows:

						Fiscal Year Ended
						December 30, 2020						December 25, 2019
						(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	3,129					$	4,536
Operating cash flows from operating leases						$	23,511					$	26,329
Financing cash flows from finance leases						$	1,570					$	2,464
Right-of-use assets obtained in exchange for new finance lease liabilities						$	142					$	305
Right-of-use assets obtained in exchange for new operating lease liabilities						$	4,831					$	79,534

Maturities of lease liabilities and receipts in accordance with Topic 842 as of December 30, 2020 were as follows:

			Lease Liabilities												Lease Receipts
			Finance						Operating						Operating
			(In thousands)
2021			$	4,737					$	25,184					$	31,732
2022			4,343						22,381						28,792
2023			3,778						20,146						26,210
2024			3,171						18,621						24,704
2025			3,163						17,453						24,248
Thereafter			19,364						106,039						177,448
Total undiscounted cash flows			38,556						209,824						$	313,134
Less: interest			23,187						55,434
Present value of lease liabilities			15,369						154,390
Less: current lease liabilities			1,839						16,856
Long-term lease liabilities			$	13,530					$	137,534

Rental expense and income in accordance with Topic 840 as of December 26, 2018 was comprised of the following: 

			Fiscal Year Ended
			December 26, 2018
			(In thousands)
Rental expense:
Included as a component of occupancy:
Base rents			$	10,272
Contingent rents			3,074
Included as a component of costs of franchise and license revenue:
Base rents			15,108
Contingent rents			2,629
Total rental expense			$	31,083
Rental income:
Included as a component of franchise and license revenue:
Base rents			$	22,831
Contingent rents			4,662
Total rental income			$	27,493

X

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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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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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

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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 55
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