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Leases (Tables)

6 Months Ended

Jun. 30, 2019

The components of lease cost are as follows:



	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Finance lease cost:
Amortization of finance lease assets	$	1,631	$	4,748
Interest on finance lease liabilities	9,939		16,692
	11,570		21,440
Operating lease cost	19,086		43,729
Variable lease cost (a)	15,371		29,475
Short-term lease cost	1,153		2,279
Total operating lease cost (b)	35,610		75,483
Total lease cost	$	47,180	$	96,923

_______________


(a)	The three and six months ended June 30, 2019 includes expenses for executory costs of $9,779 and $19,303, respectively, for which the Company is reimbursed by sublessees.

(b)

The three and six months ended June 30, 2019 includes $28,022 and $60,473, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees and $7,007 and $13,600, respectively, 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:



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	19,567
Operating cash flows from operating leases	46,425
Financing cash flows from finance leases	3,521
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	23,534
Operating lease liabilities	5,677

Schedule of Supplemental Information Related to Leases

The following table includes supplemental information related to leases:



	June 30, 2019
Weighted-average remaining lease term (years):
Finance leases	17.5
Operating leases	15.7

Weighted average discount rate:
Finance leases	10.11	%
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 June 30, 2019:



	Finance Leases						Operating Leases
Fiscal Year	Company-Operated			Franchise and Other			Company-Operated			Franchise and Other
2019 (a)	$	1,338		$	23,714		$	10,072		$	35,660
2020	2,697			44,918			19,921			71,537
2021	2,808			46,315			19,733			71,433
2022	2,858			47,322			19,421			71,604
2023	2,810			48,988			19,400			71,571
Thereafter	37,034			695,753			201,762			836,750
Total minimum payments	$	49,545		$	907,010		$	290,309		$	1,158,555
Less interest	(23,169		)	(458,243		)	(91,101		)	(383,409		)
Present value of minimum lease payments (b) (c)	$	26,376		$	448,767		$	199,208		$	775,146

_______________


(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 $9,917 and $465,226 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 $43,321 and $931,033 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 June 30, 2019:



	Finance Leases						Operating Leases
Fiscal Year	Company-Operated			Franchise and Other			Company-Operated			Franchise and Other
2019 (a)	$	1,338		$	23,714		$	10,072		$	35,660
2020	2,697			44,918			19,921			71,537
2021	2,808			46,315			19,733			71,433
2022	2,858			47,322			19,421			71,604
2023	2,810			48,988			19,400			71,571
Thereafter	37,034			695,753			201,762			836,750
Total minimum payments	$	49,545		$	907,010		$	290,309		$	1,158,555
Less interest	(23,169		)	(458,243		)	(91,101		)	(383,409		)
Present value of minimum lease payments (b) (c)	$	26,376		$	448,767		$	199,208		$	775,146

_______________


(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 $9,917 and $465,226 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 $43,321 and $931,033 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		Six Months Ended
	June 30, 2019		June 30, 2019
Sales-type and direct-financing leases:
Selling profit	$	37	$	1,971
Interest income	7,072		11,805

Operating lease income	$	43,959	$	89,164
Variable lease income	14,602		27,849
Franchise rental income (a)	$	58,561	$	117,013

_______________

(a)

Includes sublease income of $42,921 and $85,942 recognized during the three and six months ended June 30, 2019, respectively, of which $9,779 and $19,211, respectively, 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		Six Months Ended
	June 30, 2019		June 30, 2019
Sales-type and direct-financing leases:
Selling profit	$	37	$	1,971
Interest income	7,072		11,805

Operating lease income	$	43,959	$	89,164
Variable lease income	14,602		27,849
Franchise rental income (a)	$	58,561	$	117,013

_______________

(a)

Operating Lease, Lease Income

The components of lease income are as follows:



	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Sales-type and direct-financing leases:
Selling profit	$	37	$	1,971
Interest income	7,072		11,805

Operating lease income	$	43,959	$	89,164
Variable lease income	14,602		27,849
Franchise rental income (a)	$	58,561	$	117,013

_______________

(a)

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 June 30, 2019:



	Sales-Type and Direct Financing Leases						Operating Leases
Fiscal Year	Subleases			Owned Properties			Subleases		Owned Properties
2019 (a)	$	13,661		$	1,028		$	55,839	$	26,240
2020	27,872			2,130			112,551		52,872
2021	28,910			2,162			113,162		54,661
2022	29,548			2,243			114,269		56,134
2023	30,587			2,287			115,190		56,339
Thereafter	473,264			28,037			1,355,212		861,139
Total future minimum receipts	603,842			37,887			$	1,866,223	$	1,107,385
Unearned interest income	(377,235		)	(20,405		)
Net investment in sales-type and direct financing leases (b)	$	226,607		$	17,482

_______________


(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 $2,505 and $241,584 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 $237.

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 June 30, 2019:



	Sales-Type and Direct Financing Leases						Operating Leases
Fiscal Year	Subleases			Owned Properties			Subleases		Owned Properties
2019 (a)	$	13,661		$	1,028		$	55,839	$	26,240
2020	27,872			2,130			112,551		52,872
2021	28,910			2,162			113,162		54,661
2022	29,548			2,243			114,269		56,134
2023	30,587			2,287			115,190		56,339
Thereafter	473,264			28,037			1,355,212		861,139
Total future minimum receipts	603,842			37,887			$	1,866,223	$	1,107,385
Unearned interest income	(377,235		)	(20,405		)
Net investment in sales-type and direct financing leases (b)	$	226,607		$	17,482

_______________


(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 $2,505 and $241,584 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 $237.

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)

Schedule of Property Subject To Operating Lease

Properties owned by the Company and leased to franchisees and other third parties under operating leases include:



	June 30, 2019
Land	$	281,650
Buildings and improvements	311,104
Restaurant equipment	2,251
	595,005
Accumulated depreciation and amortization	(149,931		)
	$	445,074