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Leases (Tables)
 9 Months Ended
Jul. 05, 2020
Leases [Abstract]  
Lessee, Supplemental Balance Sheet Information
Company as Lessee
Leased assets and liabilities consisted of the following as of July 5, 2020 (in thousands):
July 5,
2020
Assets:
Operating lease ROU assets$902,858  
Finance lease ROU assets (1)2,511  
Total ROU assets$905,369  
Liabilities:
Current operating lease liabilities $169,347  
Current finance lease liabilities (2)821  
Long term operating lease liabilities777,883  
Long-term finance lease liabilities (2)2,306  
Total lease liabilities$950,357  
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(1)Included in “Property and equipment, net” on our condensed consolidated balance sheet.
(2)Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our condensed consolidated balance sheet.
Lease Costs, Lessee
The following table presents the components of our lease costs (in thousands):
QuarterYear-to-date
July 5,
2020		July 5,
2020
Lease costs:
Finance lease cost:
Amortization of ROU assets (1)$177  $590  
Interest on lease liabilities (2)27  88  
Operating lease cost (3)44,006  146,409  
Short-term lease cost (3)46  149  
Variable lease cost (3)(4)9,494  31,317  
$53,750  $178,553  
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(1)Included in “Depreciation and amortization” in our condensed consolidated statement of earnings.
(2)Included in “Interest expense, net” in our condensed consolidated statement of earnings.
(3)Operating lease, short-term and variable lease costs associated with franchisees and company-operated restaurants are included in “Franchise occupancy expenses” and “Occupancy and other,” respectively, in our condensed consolidated statement of earnings. For our closed restaurants, these costs are included in “Impairment and other, net” and all other costs are included in “Selling, general and administrative expenses.”
(4)Includes $8.6 million in the quarter and $28.8 million year-to-date of property taxes and common area maintenance costs which are reimbursed by sub-lessees.
The following table presents supplemental information related to leases:
July 5,
2020
Weighted-average remaining lease term (in years):
Finance leases3.5
Operating leases8.3
Weighted-average discount rate:
Finance leases3.6 %
Operating leases4.2 %
The following table includes supplemental cash flow and non-cash information related to our lessee leases (in thousands):
Year-to-date
July 5,
2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$151,981  
Operating cash flows from financing leases$88  
Financing cash flows from financing leases$593  
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$143,604  
Financing leases$132  
Operating Lease, Future Minimum Lease Payments
The following table presents as of July 5, 2020, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
Remainder of 2020 (1)$405  $38,311  
2021 (1)917  211,404  
2022906  163,586  
2023893  136,250  
2024217  104,566  
Thereafter49  484,203  
Total future lease payments (2)$3,387  $1,138,320  
Less: imputed interest(260) (191,090) 
Present value of lease liabilities$3,127  $947,230  
Finance Lease, Future Minimum Lease Payments
The following table presents as of July 5, 2020, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
Remainder of 2020 (1)$405  $38,311  
2021 (1)917  211,404  
2022906  163,586  
2023893  136,250  
2024217  104,566  
Thereafter49  484,203  
Total future lease payments (2)$3,387  $1,138,320  
Less: imputed interest(260) (191,090) 
Present value of lease liabilities$3,127  $947,230  
Future Minimum Rental Payments for Operating Leases under Topic 840
The following table presents as of September 29, 2019, future minimum lease payments for non-cancellable leases (in thousands):
Capital LeasesOperating Leases
Fiscal year:
2020$879  $193,313  
2021879  186,226  
2022879  145,794  
2023864  117,753  
2024396  87,420  
Thereafter40  363,505  
Total minimum lease payments$3,937  $1,094,011  
Less: imputed interest(343) 
Present value of lease liability$3,594  
Future Minimum Lease Payments for Capital Leases under Topic 840
Capital LeasesOperating Leases
Fiscal year:
2020$879  $193,313  
2021879  186,226  
2022879  145,794  
2023864  117,753  
2024396  87,420  
Thereafter40  363,505  
Total minimum lease payments$3,937  $1,094,011  
Less: imputed interest(343) 
Present value of lease liability$3,594  
Lease Income
Company as Lessor
The following table presents rental income (in thousands):
QuarterYear-to-date
July 5, 2020July 5, 2020
Owned PropertiesLeased PropertiesTotalOwned PropertiesLeased PropertiesTotal
Operating lease income - franchise$4,562  $49,819  $54,381  $15,229  $166,511  $181,740  
Variable lease income - franchise2,570  19,070  21,640  7,096  53,154  60,250  
Franchise rental revenues$7,132  $68,889  $76,021  $22,325  $219,665  $241,990  
Operating lease income - closed restaurants and other (1)$—  $1,442  $1,442  $—  $4,969  $4,969  
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(1)Primarily relates to closed restaurant properties included in “Impairment and other, net” in our condensed consolidated statement of earnings.
Future Minimum Rental Receipts
The following table presents as of July 5, 2020, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
July 5,
2020
Fiscal year:
Remainder of 2020 (1)(2)$44,093  
2021 (2)262,910  
2022233,084  
2023226,507  
2024201,325  
Thereafter1,259,936  
Total minimum rental receipts$2,227,855  
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(1)Includes $2.9 million of postponed April rents to be repaid over three months beginning July 2020.
(2)The impact of rent concessions passed on to franchisees increased 2020 by $1.9 million and increased 2021 by $2.7 million.
Future Minimum Rental Receipts for Noncancelable Leases under Topic 840
The following table presents as of September 29, 2019, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
September 29,
2019
Fiscal year:
2020$239,219  
2021255,315  
2022231,394  
2023224,605  
2024199,442  
Thereafter1,215,811  
Total minimum rental receipts$2,365,786