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Leases (Tables)
12 Months Ended
Oct. 02, 2022
Leases [Abstract]  
Lessee, Supplemental Balance Sheet Information Leased assets and liabilities consisted of the following as of October 2, 2022 and October 3, 2021 (in thousands):
October 2,
2022
October 3,
2021
Assets:
Operating lease ROU assets$1,332,135 $934,066 
Finance lease ROU assets (1)854 1,698 
Total ROU assets$1,332,989 $935,764 
Liabilities:
Current operating lease liabilities $171,311 $150,636 
Current finance lease liabilities (2)896 894 
Long-term operating lease liabilities1,165,097 809,191 
Long-term finance lease liabilities (2)435 1,381 
Total lease liabilities$1,337,739 $962,102 
________________________
(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 2022, 2021, and 2020 (in thousands):
202220212020
Lease costs:
Finance lease cost:
Amortization of ROU assets (1)$827 $807 $767 
Interest on lease liabilities (2)67 89 110 
Operating lease cost (3)218,837 194,149 190,461 
Short-term lease cost (3)824 427 175 
Variable lease cost (3)(4)48,872 43,498 40,798 
$269,427 $238,970 $232,311 
____________________________
(1)Included in “Depreciation and amortization” in our consolidated statements of earnings.
(2)Included in “Interest expense, net” in our consolidated statements 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 statements of earnings. For our closed restaurants, these costs are included in “Other operating expense (income), net” and all other costs are included in “Selling, general and administrative expenses.”
(4)Includes $38.2 million, $38.0 million, and $37.4 million in 2022, 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 2,
2022
October 3,
2021
Weighted-average remaining lease term (in years):
Finance leases1.52.4
Operating leases10.09.0
Weighted-average discount rate:
Finance leases3.8 %3.6 %
Operating leases4.6 %4.1 %
The following table includes supplemental cash flow and non-cash information related to our lessee leases (in thousands):
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$218,605 $218,570 
Operating cash flows from financing leases$67 $89 
Financing cash flows from financing leases$907 $829 
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$221,466 $186,621 
Right-of-use assets obtained in exchange for new financing lease obligations$45 $184 
Operating Lease, Future Minimum Lease Payments
The following table presents as of October 2, 2022, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2023$932 $231,670 
2024372 196,702 
202540 191,507 
202627 174,068 
202714 159,219 
Thereafter13 758,184 
Total future lease payments (1)$1,398 $1,711,350 
Less: imputed interest(67)(374,942)
Present value of lease liabilities$1,331 $1,336,408 
Less current portion(896)(171,311)
Long-term lease obligations$435 $1,165,097 
________________________
(1)Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,366.5 million for operating leases.
Finance Lease, Future Minimum Lease Payments
The following table presents as of October 2, 2022, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2023$932 $231,670 
2024372 196,702 
202540 191,507 
202627 174,068 
202714 159,219 
Thereafter13 758,184 
Total future lease payments (1)$1,398 $1,711,350 
Less: imputed interest(67)(374,942)
Present value of lease liabilities$1,331 $1,336,408 
Less current portion(896)(171,311)
Long-term lease obligations$435 $1,165,097 
________________________
(1)Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,366.5 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):
20222021
Buildings$1,342 $1,342 
Equipment5,559 5,869 
Less accumulated amortization(6,047)(5,513)
$854 $1,698 
Rental Income The following table presents rental income (in thousands):
20222021
Owned PropertiesLeased PropertiesTotalOwned PropertiesLeased PropertiesTotal
Operating lease income - franchise$19,221 $212,552 $231,773 $20,132 $218,028 $238,160 
Variable lease income - franchise12,418 96,002 108,420 12,363 96,111 108,474 
Amortization of favorable and unfavorable lease contracts, net— 198 198 — — — 
Franchise rental revenues$31,639 $308,752 $340,391 $32,495 $314,139 $346,634 
Operating lease income - closed restaurants and other (1)$60 $6,347 $6,407 $— $6,027 $6,027 
________________________
(1)Primarily relates to closed restaurant properties included in “Other operating expense (income), net” in our consolidated statements of earnings.
Future Minimum Rental Receipts
The following table presents as of October 2, 2022, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
October 2,
2022
Fiscal year:
2023$243,929 
2024217,567 
2025225,542 
2026211,507 
2027204,685 
Thereafter879,829 
Total minimum rental receipts$1,983,059 
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 2,
2022
October 3,
2021
Land$75,967 $89,791 
Buildings771,567 782,450 
Equipment2,750 223 
850,284 872,464 
Less accumulated depreciation(663,109)(657,030)
$187,175 $215,434