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LEASES (Tables)
 12 Months Ended
Jun. 29, 2022
Leases [Abstract]  
Consolidated Balance Sheet Disclosure of Lease Amounts
The following table includes a detail of lease assets and liabilities included in the Consolidated Balance Sheets:
June 29, 2022
Finance
Leases(1)
Operating
Leases(2)
Total Leases
Lease assets$71.1 $1,160.5 $1,231.6 
Current lease liabilities20.3 112.7 133.0 
Long-term lease liabilities69.9 1,151.1 1,221.0 
Total lease liabilities$90.2 $1,263.8 $1,354.0 
June 30, 2021
Finance
Leases(1)
Operating
Leases(2)
Total Leases
Lease assets$98.2 $1,007.4 $1,105.6 
Current lease liabilities21.5 97.7 119.2 
Long-term lease liabilities99.8 1,006.7 1,106.5 
Total lease liabilities$121.3 $1,104.4 $1,225.7 
(1)Finance lease assets are recorded in Property and equipment, at cost, and the related current and long-term lease liabilities are recorded within Other accrued liabilities and Long-term debt and finance leases, less current installments, respectively.
(2)Operating lease assets are recorded in Operating lease assets and the related current and long-term lease liabilities are recorded within Operating lease liabilities and Long-term operating lease liabilities, less current portion, respectively.
Consolidated Statement of Comprehensive Income Disclosure of Lease Amounts
The components of lease expenses, including variable lease costs primarily consisting of rent based on a percentage of sales, common area maintenance and real estate tax charges, and short-term lease expenses for leases with lease terms less than twelve months are included in the Consolidated Statements of Comprehensive Income as follows:
Fiscal Years Ended
June 29, 2022June 30, 2021June 24, 2020
Operating lease expenses (amortization and interest)$173.7 $167.2 $162.8 
Finance lease amortization21.9 17.3 20.9 
Finance lease interest5.5 5.9 4.6 
Short-term lease cost0.6 0.5 1.4 
Variable lease cost60.5 57.9 57.7 
Sublease income(4.2)(4.4)(4.6)
Total lease costs, net$258.0 $244.4 $242.8 
Consolidated Statement of Cash Flows Disclosure of Lease Amounts
Supplemental cash flow information related to leases recorded in the Consolidated Statements of Cash Flows is as follows:
Fiscal Years Ended
June 29, 2022June 30, 2021June 24, 2020
Cash flows from operating activities
Cash paid related to lease liabilities
Operating leases(1)
$171.1 $195.5 $159.6 
Finance leases5.5 5.9 4.6 
Cash flows from financing activities
Cash paid related to lease liabilities
Finance leases23.7 20.0 17.8 
Non-cash lease assets obtained in exchange for lease liabilities(2)
Operating leases(3)
255.4 60.6 224.0 
Finance leases13.4 29.8 73.2 
(1)Cash paid related to lease liabilities for Operating leases increased in fiscal 2021 primarily due to the prepayment of July 2021 lease payments and lease payments made during fiscal 2021 for rents that were deferred in fiscal 2020 due to the impacts of the COVID-19 pandemic.
(2)Non-cash lease assets obtained in exchange for lease liabilities were higher in fiscal 2020 primarily due to the new and assumed operating and finance leases from the fiscal 2020 Chili’s restaurant acquisition and the new Chili’s finance lease for table-top devices. Refer to Note 2 - Chili's Restaurant Acquisitions for more information.
(3)Non-cash operating lease assets obtained in exchange for operating lease liabilities were higher in fiscal 2022 primarily due to the new and assumed operating lease additions associated with the 68 restaurants purchased from three former franchisees and the modifications of 25 leases. Refer to Note 2 - Chili's Restaurant Acquisitions and “Significant Changes in Leases in Fiscal 2022” section below for more information.
Weighted Average Lease Term and Discount Rate
Other information related to leases is as follows:
Fiscal Years Ended
June 29, 2022June 30, 2021
Finance LeasesOperating LeasesFinance LeasesOperating Leases
Weighted average remaining lease term9.1 years12.0 years8.5 years11.0 years
Weighted average discount rate5.1 %5.5 %5.4 %5.6 %
Lease Maturity Analysis
Finance leases and Operating leases total future lease payments represent the contractual obligations due under the lease agreements, including cancellable option periods where we are reasonably assured to exercise the options. As of June 29, 2022, the future minimum lease payments on finance and operating leases, as well as sublease income were as follows:
June 29, 2022
Fiscal YearFinance LeasesOperating LeasesSublease Income
2023$24.5 $177.6 $1.9 
202415.6 176.3 1.2 
202512.4 166.9 1.2 
20268.2 153.2 0.7 
20277.6 135.5 0.5 
Thereafter47.5 950.6 0.5 
Total future lease payments(1)
115.8 1,760.1 $6.0 
Less: Imputed interest25.6 496.3 
Present value of lease liability$90.2 $1,263.8 
(1)Total future lease payments as of June 29, 2022 included non-cancelable lease commitments of $90.1 million for finance leases and $1,110.4 million for operating leases.