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Leases (Tables)
 3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Lease, Cost
The components of lease cost are as follows:
 
Three Months Ended
 
March 31,
2019
Finance lease cost:
 
Amortization of finance lease assets
$
3,117

Interest on finance lease liabilities
6,753

 
9,870

Operating lease cost
24,643

Variable lease cost (a)
14,104

Short-term lease cost
1,126

Total operating lease cost (b)
39,873

Total lease cost
$
49,743

_______________

(a)
Includes expenses for executory costs of $9,524, for which the Company is reimbursed by sublessees.

(b)
Includes $32,451 recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees and $6,593 recorded to “Cost of sales” for leases for Company-operated restaurants.
Schedule of Supplemental Cash Flow and Non-cash Information Related to Leases
The following table includes supplemental cash flow and non-cash information related to leases:
 
Three Months Ended
 
March 31,
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows from finance leases
$
9,708

Operating cash flows from operating leases
23,312

Financing cash flows from finance leases
1,881

Right-of-use assets obtained in exchange for lease obligations:
 
Finance lease liabilities
13,810

Operating lease liabilities
3,255
Schedule of Supplemental Information Related to Leases
The following table includes supplemental information related to leases:
 
March 31, 2019
Weighted-average remaining lease term (years):
 
Finance leases
17.8

Operating leases
15.9

 
 
Weighted average discount rate:
 
Finance leases
10.19
%
Operating leases
5.10
%
Finance Lease, Liability, Maturity
The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of March 31, 2019:
 
Finance
Leases
 
Operating
Leases
Fiscal Year
Company- Operated
 
Franchise
and Other
 
Company- Operated
 
Franchise
and Other
2019 (a)
$
1,917

 
$
34,251

 
$
15,168

 
$
54,760

2020
2,577

 
44,313

 
20,022

 
73,121

2021
2,687

 
45,706

 
19,764

 
73,067

2022
2,738

 
46,724

 
19,398

 
73,330

2023
2,690

 
48,389

 
19,376

 
73,407

Thereafter
34,441

 
688,400

 
200,962

 
853,051

Total minimum payments
$
47,050

 
$
907,783

 
$
294,690

 
$
1,200,736

Less interest
(22,400
)
 
(464,458
)
 
(93,278
)
 
(400,752
)
Present value of minimum lease payments (b) (c)
$
24,650

 
$
443,325

 
$
201,412

 
$
799,984

_______________

(a)
Represents future minimum rental payments for non-cancelable leases for the remainder of 2019.

(b)
The present value of minimum finance lease payments of $9,380 and $458,595 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.

(c)
The present value of minimum operating lease payments of $43,657 and $957,739 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.

The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of December 30, 2018:
 
Finance
Leases
 
Operating
Leases
Fiscal Year
Company- Operated
 
Franchise
and Other
 
Company- Operated
 
Franchise
and Other
2019
$
1,962

 
$
45,125

 
$
20,174

 
$
75,703

2020
1,978

 
43,969

 
20,052

 
73,320

2021
2,082

 
45,522

 
19,820

 
73,167

2022
2,114

 
46,573

 
19,530

 
73,300

2023
2,084

 
48,109

 
19,430

 
73,377

Thereafter
23,558

 
676,139

 
203,073

 
854,964

Total minimum payments
$
33,778

 
$
905,437

 
$
302,079

 
$
1,223,831

Less interest
(16,874
)
 
(466,705
)
 
 
 
 
Present value of minimum lease payments (a)
$
16,904

 
$
438,732

 
 
 
 
_______________

(a)
The present value of minimum finance lease payments of $8,405 and $447,231 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.
Lessee, Operating Lease, Liability, Maturity
The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of March 31, 2019:
 
Finance
Leases
 
Operating
Leases
Fiscal Year
Company- Operated
 
Franchise
and Other
 
Company- Operated
 
Franchise
and Other
2019 (a)
$
1,917

 
$
34,251

 
$
15,168

 
$
54,760

2020
2,577

 
44,313

 
20,022

 
73,121

2021
2,687

 
45,706

 
19,764

 
73,067

2022
2,738

 
46,724

 
19,398

 
73,330

2023
2,690

 
48,389

 
19,376

 
73,407

Thereafter
34,441

 
688,400

 
200,962

 
853,051

Total minimum payments
$
47,050

 
$
907,783

 
$
294,690

 
$
1,200,736

Less interest
(22,400
)
 
(464,458
)
 
(93,278
)
 
(400,752
)
Present value of minimum lease payments (b) (c)
$
24,650

 
$
443,325

 
$
201,412

 
$
799,984

_______________

(a)
Represents future minimum rental payments for non-cancelable leases for the remainder of 2019.

(b)
The present value of minimum finance lease payments of $9,380 and $458,595 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.

(c)
The present value of minimum operating lease payments of $43,657 and $957,739 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.

The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of December 30, 2018:
 
Finance
Leases
 
Operating
Leases
Fiscal Year
Company- Operated
 
Franchise
and Other
 
Company- Operated
 
Franchise
and Other
2019
$
1,962

 
$
45,125

 
$
20,174

 
$
75,703

2020
1,978

 
43,969

 
20,052

 
73,320

2021
2,082

 
45,522

 
19,820

 
73,167

2022
2,114

 
46,573

 
19,530

 
73,300

2023
2,084

 
48,109

 
19,430

 
73,377

Thereafter
23,558

 
676,139

 
203,073

 
854,964

Total minimum payments
$
33,778

 
$
905,437

 
$
302,079

 
$
1,223,831

Less interest
(16,874
)
 
(466,705
)
 
 
 
 
Present value of minimum lease payments (a)
$
16,904

 
$
438,732

 
 
 
 
_______________

(a)
The present value of minimum finance lease payments of $8,405 and $447,231 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.
Sales-type Lease, Lease Income
The components of lease income are as follows:
 
Three Months Ended
 
March 31,
2019
Sales-type and direct-financing leases:
 
Selling profit
$
1,934

Interest income
4,733

 
 
Operating lease income
$
45,205

Variable lease income
13,247

Franchise rental income (a)
$
58,452

_______________

(a)
Includes sublease income of $43,021 recognized during the three months ended March 31, 2019, of which $9,432 represents lessees’ variable payments to the Company for executory costs.
Direct Financing Lease, Lease Income
The components of lease income are as follows:
 
Three Months Ended
 
March 31,
2019
Sales-type and direct-financing leases:
 
Selling profit
$
1,934

Interest income
4,733

 
 
Operating lease income
$
45,205

Variable lease income
13,247

Franchise rental income (a)
$
58,452

_______________

(a)
Includes sublease income of $43,021 recognized during the three months ended March 31, 2019, of which $9,432 represents lessees’ variable payments to the Company for executory costs.
Operating Lease, Lease Income
The components of lease income are as follows:
 
Three Months Ended
 
March 31,
2019
Sales-type and direct-financing leases:
 
Selling profit
$
1,934

Interest income
4,733

 
 
Operating lease income
$
45,205

Variable lease income
13,247

Franchise rental income (a)
$
58,452

_______________

(a)
Includes sublease income of $43,021 recognized during the three months ended March 31, 2019, of which $9,432 represents lessees’ variable payments to the Company for executory costs.
Sales-type and Direct Financing Leases, Lease Receivable, Maturity
The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of March 31, 2019:
 
Sales-Type and
Direct Financing Leases
 
Operating
Leases
Fiscal Year
Subleases
 
Owned Properties
 
Subleases
 
Owned Properties
2019 (a)
$
20,182

 
$
1,543

 
$
84,371

 
$
39,451

2020
27,484

 
2,130

 
113,275

 
52,990

2021
28,522

 
2,162

 
114,167

 
54,561

2022
29,159

 
2,243

 
115,363

 
56,034

2023
30,193

 
2,287

 
116,342

 
56,239

Thereafter
466,197

 
28,031

 
1,367,503

 
859,548

Total future minimum receipts
601,737

 
38,396

 
$
1,911,021

 
$
1,118,823

Unearned interest income
(380,607
)
 
(20,831
)
 
 
 
 
Net investment in sales-type and direct financing leases (b)
$
221,130

 
$
17,565

 
 
 
 
_______________

(a)
Represents future minimum rental receipts for non-cancelable leases for the remainder of 2019.

(b)
The present value of minimum direct financing rental receipts of $2,269 and $236,426 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum direct financing rental receipts includes a net investment in unguaranteed residual assets of $233.

The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of December 30, 2018:
 
Sales-Type and
Direct Financing Leases
 
Operating
Leases
Fiscal Year
Subleases
 
Owned Properties
 
Subleases
 
Owned Properties
2019
$
26,239

 
$
1,937

 
$
113,180

 
$
52,527

2020
26,859

 
2,006

 
113,578

 
53,066

2021
27,904

 
2,043

 
114,447

 
54,615

2022
28,563

 
2,119

 
115,552

 
56,092

2023
29,512

 
2,159

 
116,463

 
56,284

Thereafter
448,851

 
26,404

 
1,372,646

 
858,755

Total future minimum receipts
587,928

 
36,668

 
$
1,945,866

 
$
1,131,339

Unearned interest income
(377,046
)
 
(20,338
)
 
 
 
 
Net investment in sales-type and direct financing leases (a)
$
210,882

 
$
16,330

 
 
 
 
_______________

(a)
The present value of minimum direct financing rental receipts of $735 and $226,477 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively.
Lessor, Operating Lease, Payments to be Received, Maturity
The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of March 31, 2019:
 
Sales-Type and
Direct Financing Leases
 
Operating
Leases
Fiscal Year
Subleases
 
Owned Properties
 
Subleases
 
Owned Properties
2019 (a)
$
20,182

 
$
1,543

 
$
84,371

 
$
39,451

2020
27,484

 
2,130

 
113,275

 
52,990

2021
28,522

 
2,162

 
114,167

 
54,561

2022
29,159

 
2,243

 
115,363

 
56,034

2023
30,193

 
2,287

 
116,342

 
56,239

Thereafter
466,197

 
28,031

 
1,367,503

 
859,548

Total future minimum receipts
601,737

 
38,396

 
$
1,911,021

 
$
1,118,823

Unearned interest income
(380,607
)
 
(20,831
)
 
 
 
 
Net investment in sales-type and direct financing leases (b)
$
221,130

 
$
17,565

 
 
 
 
_______________

(a)
Represents future minimum rental receipts for non-cancelable leases for the remainder of 2019.

(b)
The present value of minimum direct financing rental receipts of $2,269 and $236,426 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum direct financing rental receipts includes a net investment in unguaranteed residual assets of $233.

The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of December 30, 2018:
 
Sales-Type and
Direct Financing Leases
 
Operating
Leases
Fiscal Year
Subleases
 
Owned Properties
 
Subleases
 
Owned Properties
2019
$
26,239

 
$
1,937

 
$
113,180

 
$
52,527

2020
26,859

 
2,006

 
113,578

 
53,066

2021
27,904

 
2,043

 
114,447

 
54,615

2022
28,563

 
2,119

 
115,552

 
56,092

2023
29,512

 
2,159

 
116,463

 
56,284

Thereafter
448,851

 
26,404

 
1,372,646

 
858,755

Total future minimum receipts
587,928

 
36,668

 
$
1,945,866

 
$
1,131,339

Unearned interest income
(377,046
)
 
(20,338
)
 
 
 
 
Net investment in sales-type and direct financing leases (a)
$
210,882

 
$
16,330

 
 
 
 
_______________

(a)
The present value of minimum direct financing rental receipts of $735 and $226,477 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively.
Schedule of Property Subject To Operating Lease
Properties owned by the Company and leased to franchisees and other third parties under operating leases include:
 
March 31, 2019
Land
$
281,571

Buildings and improvements
310,912

Restaurant equipment
2,120

 
594,603

Accumulated depreciation and amortization
(145,812
)
 
$
448,791