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Leases | 12 Months Ended
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Sep. 29, 2020
Lessee Disclosure [Abstract] |
Leases |
6. | Leases:
The Company’s office space and the land and buildings related to the Drive Thru and Bad Daddy’s restaurant facilities are classified as operating leases and expire over the next 18 years. Some leases contain escalation clauses over the lives of the leases. Most of the leases contain one to three five-year renewal options at the end of the initial term. Certain leases include provisions for additional contingent rent payments if sales volumes exceed specified levels. The Company paid $18,000 and $32,000 in contingent rentals for fiscal 2020 and fiscal 2019, respectively. The Company determines if a contract contains a lease at inception. The Company's material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 years to 20 years, most of which include renewal options of 10 to 15 years. The lease term is generally the minimum of the noncancelable period or the lease term including renewal options which are reasonably certain of being exercised up to a term of approximately 20 years. Some of the leases provide for base rent, plus additional rent based on gross sales, as defined in each lease agreement. The Company is also generally obligated to pay certain real estate taxes, insurance and common area maintenance charges, and various other expenses related to properties, which are expensed as incurred. Components of operating lease costs in the consolidated statements of operations for the fiscal year ended September 29, 2020 are as follows (in thousands):
|  | Classification |  | Fiscal 2020 |
Operating lease cost |  | Occupancy, Other restaurant operating costs and General and administrative expenses, net |  | $ | 7,204 |
Variable lease cost |  | Occupancy |  |  | 80 |
Sublease income |  | Occupancy |  |  | (500 | )
Total lease expense |  |  |  | $ | 6,784 |
Components of lease assets and liabilities on the consolidated balance sheets as of September 29, 2020 are as follows (in thousands):
|  | Classification |  | September 29, 2020 |
Right-of-use assets |  | Operating lease assets |  | $ | 49,252 |
Current lease liabilities |  | Operating lease liability |  | $ | 4,689 |
Non-current lease liabilities |  | Operating lease liability, less current portion |  |  | 53,731 |
Total lease liabilities |  |  |  | $ | 58,420 |
Supplemental cash flow disclosures for the fiscal year ended September 29, 2020 (in thousands):
|  | Fiscal 2020 |
Cash paid for operating lease liabilities |  | $ | 6,840 |
Non-cash operating lease assets obtained in exchange for operating lease liabilities |  | $ | 2,390 |
Weighted average lease term and discount rate are as follows:
|  | September 29, 2020 |
Weighted average remaining lease term (in years) |  |  | 10.4 |
Weighted average discount rate |  |  | 5.0 | %
Future minimum rent payments for our operating leases for each of the next five years as of September 29, 2020 are as follows (in thousands):
Fiscal year ending: |  | Total |
2021 |  | $ | 7,491 |
2022 |  |  | 7,489 |
2023 |  |  | 7,534 |
2024 |  |  | 7,382 |
2025 |  |  | 7,483 |
Thereafter |  |  | 38,765 |
Total minimum lease payments |  |  | 76,144 |
Less: imputed interest |  |  | (17,724 | )
Present value of lease liabilities |  | $ | 58,420 |
The above future minimum rental amounts exclude the amortization of deferred lease incentives, renewal options that are not reasonably assured of renewal, and contingent rent. The Company generally has escalating rents over the term of the leases and records rent expense on a straight-line basis.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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- References No definition available. + Details
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