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Leases (Tables)
 12 Months Ended
Oct. 03, 2021
Leases [Abstract]  
Lessee, Supplemental Balance Sheet Information Leased assets and liabilities consisted of the following as of October 3, 2021 and September 27, 2020 (in thousands):
October 3,
2021		September 27,
2020
Assets:
Operating lease ROU assets$934,066 $904,548 
Finance lease ROU assets (1)1,698 2,333 
Total ROU assets$935,764 $906,881 
Liabilities:
Current operating lease liabilities $150,636 $179,000 
Current finance lease liabilities (2)894 818 
Long-term operating lease liabilities809,191 776,094 
Long-term finance lease liabilities (2)1,381 2,116 
Total lease liabilities$962,102 $958,028 
________________________
(1)Included in “Property and equipment, net” on our consolidated balance sheets.
(2)Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheets.
Lease Costs, Lessee
The following table presents the components of our lease costs in fiscal 2021 and 2020 (in thousands):
20212020
Lease costs:
Finance lease cost:
Amortization of ROU assets (1)$807 $767 
Interest on lease liabilities (2)89 110 
Operating lease cost (3)194,149 190,461 
Short-term lease cost (3)427 175 
Variable lease cost (3)(4)43,498 40,798 
$238,970 $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 (gains) charges, net” and all other costs are included in “Selling, general and administrative expenses.”
(4)Includes $38.0 million and $37.4 million in 2021 and 2020, respectively, of property taxes and common area maintenance costs which are reimbursed by sub-lessees.
The following table presents supplemental information related to leases:
October 3,
2021		September 27,
2020
Weighted-average remaining lease term (in years):
Finance leases2.43.3
Operating leases9.08.3
Weighted-average discount rate:
Finance leases3.6 %3.5 %
Operating leases4.1 %4.2 %
The following table includes supplemental cash flow and non-cash information related to our lessee leases (in thousands):
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$218,570 $190,303 
Operating cash flows from financing leases$89 $110 
Financing cash flows from financing leases$829 $785 
Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets:
Right-of-use assets obtained in exchange for new operating lease obligations$186,621 $181,532 
Right-of-use assets obtained in exchange for new financing lease obligations$184 $132 
Components of Rent Expense
The following table summarizes the components of rent expense in fiscal 2019, as accounted for under previous guidance (in thousands):
2019
Minimum rentals184,587 
Contingent rentals2,255 
Total rent expense186,842 
Operating Lease, Future Minimum Lease Payments
The following table presents as of October 3, 2021, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2022$961 $186,717 
2023944 161,788 
2024413 128,816 
202550 122,114 
202625 106,582 
Thereafter27 460,138 
Total future lease payments (1)$2,420 $1,166,155 
Less: imputed interest(145)(206,328)
Present value of lease liabilities$2,275 $959,827 
Less current portion(894)(150,636)
Long-term lease obligations$1,381 $809,191 
________________________
(1)Total future lease payments include non-cancellable commitments of $2.4 million for finance leases and $1,000.0 million for operating leases.
Finance Lease, Future Minimum Lease Payments
The following table presents as of October 3, 2021, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2022$961 $186,717 
2023944 161,788 
2024413 128,816 
202550 122,114 
202625 106,582 
Thereafter27 460,138 
Total future lease payments (1)$2,420 $1,166,155 
Less: imputed interest(145)(206,328)
Present value of lease liabilities$2,275 $959,827 
Less current portion(894)(150,636)
Long-term lease obligations$1,381 $809,191 
________________________
(1)Total future lease payments include non-cancellable commitments of $2.4 million for finance leases and $1,000.0 million for operating leases.
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):
20212020
Buildings1,342 1,342 
Equipment5,869 5,631 
Less accumulated amortization(5,513)(4,640)
1,698 2,333 
Rental Income The following table presents rental income (in thousands):
20212020
Owned PropertiesLeased PropertiesTotalOwned PropertiesLeased PropertiesTotal
Operating lease income - franchise$20,132 $218,028 $238,160 $19,785 $216,015 $235,800 
Variable lease income - franchise12,363 96,111 108,474 9,960 74,887 84,847 
Franchise rental revenues$32,495 $314,139 $346,634 $29,745 $290,902 $320,647 
Operating lease income - closed restaurants and other (1)$— $6,027 $6,027 $— $6,370 $6,370 
________________________
(1)Primarily relates to closed restaurant properties included in “Impairment and other (gains) charges, net” in our consolidated statement of earnings.
Future Minimum Rental Receipts
The following table presents as of October 3, 2021, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
October 3,
2021
Fiscal year:
2022$238,021 
2023231,342 
2024205,740 
2025214,526 
2026199,906 
Thereafter939,239 
Total minimum rental receipts$2,028,774 
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):
October 3,
2021		September 27,
2020
Land$89,791 $88,187 
Buildings782,450 801,730 
Equipment223 589 
872,464 890,506 
Less accumulated depreciation(657,030)(650,812)
$215,434 $239,694