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Leases (Tables)
 12 Months Ended
Sep. 27, 2020
Leases [Abstract]  
Lessee, Supplemental Balance Sheet Information Leased assets and liabilities consisted of the following as of September 27, 2020 (in thousands):
September 27,
2020
Assets:
Operating lease ROU assets$904,548 
Finance lease ROU assets (1)2,333 
Total ROU assets$906,881 
Liabilities:
Current operating lease liabilities $179,000 
Current finance lease liabilities (2)818 
Long term operating lease liabilities776,094 
Long-term finance lease liabilities (2)2,116 
Total lease liabilities$958,028 
________________________
(1)Included in “Property and equipment, net” on our consolidated balance sheet.
(2)Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheet.
Lease Costs, Lessee
The following table presents the components of our lease costs in fiscal 2020 (in thousands):
2020
Lease costs:
Finance lease cost:
Amortization of ROU assets (1)$767 
Interest on lease liabilities (2)110 
Operating lease cost (3)190,461 
Short-term lease cost (3)175 
Variable lease cost (3)(4)40,798 
$232,311 
________________________
(1)Included in “Depreciation and amortization” in our consolidated statement of earnings.
(2)Included in “Interest expense, net” in our 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 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 $37.4 million of property taxes and common area maintenance costs which are reimbursed by sub-lessees.
The following table presents supplemental information related to leases:
September 27,
2020
Weighted-average remaining lease term (in years):
Finance leases3.3
Operating leases8.3
Weighted-average discount rate:
Finance leases3.5 %
Operating leases4.2 %
The following table includes supplemental cash flow and non-cash information related to our lessee leases (in thousands):
2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$190,303 
Operating cash flows from financing leases$110 
Financing cash flows from financing leases$785 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$181,532 
Financing leases$132 
Components of Rent Expense
The following table summarizes the components of rent expense in fiscal 2019 and 2018, as accounted for under previous guidance (in thousands):
20192018
Minimum rentals184,587 184,106 
Contingent rentals2,255 2,221 
Total rent expense186,842 186,327 
Operating Lease, Future Minimum Lease Payments
The following table presents as of September 27, 2020, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2021 (1)$917 $215,039 
2022906 167,926 
2023904 140,576 
2024400 108,576 
202524 99,334 
Thereafter20 417,850 
Total future lease payments (2)$3,171 $1,149,301 
Less: imputed interest(237)(194,207)
Present value of lease liabilities$2,934 $955,094 
Less current portion(818)(179,000)
Long-term lease obligations$2,116 $776,094 
________________________
(1)The impact of rent concessions increased 2021 operating leases maturities by $7.2 million.
(2)Total future lease payments include non-cancellable commitments of $3.2 million for finance leases and $1,076.9 million for operating leases.
Finance Lease, Future Minimum Lease Payments
The following table presents as of September 27, 2020, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2021 (1)$917 $215,039 
2022906 167,926 
2023904 140,576 
2024400 108,576 
202524 99,334 
Thereafter20 417,850 
Total future lease payments (2)$3,171 $1,149,301 
Less: imputed interest(237)(194,207)
Present value of lease liabilities$2,934 $955,094 
Less current portion(818)(179,000)
Long-term lease obligations$2,116 $776,094 
________________________
(1)The impact of rent concessions increased 2021 operating leases maturities by $7.2 million.
(2)Total future lease payments include non-cancellable commitments of $3.2 million for finance leases and $1,076.9 million for operating leases.
Future Minimum Lease Payments for Capital and 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 
Less current portion(774)
Long-term lease obligations$2,820 
Assets Recorded Under Finance Leases
Assets recorded under finance leases are included in property and equipment, and consisted of the following at each fiscal year-end (in thousands):
20202019
Buildings1,342 1,342 
Equipment5,631 5,538 
Less accumulated amortization(4,640)(3,904)
2,333 2,976 
Rental Income The following table presents rental income (in thousands):
2020
Owned PropertiesLeased PropertiesTotal
Operating lease income - franchise$19,785 $216,015 $235,800 
Variable lease income - franchise9,960 74,887 84,847 
Franchise rental revenues$29,745 $290,902 $320,647 
Operating lease income - closed restaurants and other (1)$— $6,370 $6,370 
________________________
(1)Primarily relates to closed restaurant properties included in “Impairment and other, net” in our consolidated statement of earnings.
Schedule of Rental Income (under previous guidance)
The following table summarizes rents received in fiscal 2019 and 2018, as accounted for under previous guidance (in thousands):
20192018
Total rental income (1)$277,623 $264,432 
Contingent rentals$38,506 $35,148 
________________________
(1)Includes contingent rentals.
Future Minimum Rental Receipts
The following table presents as of September 27, 2020, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
September 27,
2020
Fiscal year:
2021 (1)$261,388 
2022234,545 
2023227,976 
2024202,636 
2025211,320 
Thereafter1,067,624 
Total minimum rental receipts$2,205,489 
________________________
(1)The impact of rent concessions passed on to franchisees increased 2021 by $2.6 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 
Assets Held for Lease
Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end (in thousands):
September 27,
2020		September 29,
2019
Land$88,187 $91,130 
Buildings801,730 817,400 
Equipment589 537 
890,506 909,067 
Less accumulated depreciation(650,812)(632,197)
$239,694 $276,870