XML 54 R38.htm IDEA: XBRL DOCUMENT v3.23.3
Leases (Tables)
 12 Months Ended
Oct. 01, 2023
Leases [Abstract]  
Lessee, Supplemental Balance Sheet Information Leased assets and liabilities consisted of the following as of October 1, 2023 and October 2, 2022 (in thousands):
October 1,
2023		October 2,
2022
Assets:
Operating lease ROU assets$1,397,555 $1,332,135 
Finance lease ROU assets (1)971 854 
Total ROU assets$1,398,526 $1,332,989 
Liabilities:
Current operating lease liabilities $142,518 $171,311 
Current finance lease liabilities (2)689 896 
Long-term operating lease liabilities1,265,514 1,165,097 
Long-term finance lease liabilities (2)627 435 
Total lease liabilities$1,409,348 $1,337,739 
________________________
(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 2023, 2022, and 2021 (in thousands):
202320222021
Lease costs:
Finance lease cost:
Amortization of ROU assets (1)$691 $827 $807 
Interest on lease liabilities (2)55 67 89 
Operating lease cost (3)240,153 218,837 194,149 
Short-term lease cost (3)730 824 427 
Variable lease cost (3)(4)50,448 48,872 43,498 
$292,077 $269,427 $238,970 
________________________
(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 $39.9 million, $38.2 million, and $38.0 million in 2023, 2022, and 2021, 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 1,
2023		October 2,
2022
Weighted-average remaining lease term (in years):
Finance leases1.71.5
Operating leases11.110.0
Weighted-average discount rate:
Finance leases7.1 %3.8 %
Operating leases5.5 %4.6 %
The following table includes supplemental cash flow and non-cash information related to our lessee leases (in thousands):
20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$236,356 $218,605 
Operating cash flows from financing leases$55 $67 
Financing cash flows from financing leases$836 $907 
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$250,862 $221,466 
Right-of-use assets obtained in exchange for new financing lease obligations$5 $45 
Operating Lease, Future Minimum Lease Payments
The following table presents as of October 1, 2023, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2024$757 $217,591 
2025651 217,931 
202618 202,189 
2027— 192,088 
2028— 154,422 
Thereafter— 971,239 
Total future lease payments (1)$1,426 $1,955,460 
Less: imputed interest(110)(547,428)
Present value of lease liabilities$1,316 $1,408,032 
Less current portion(689)(142,518)
Long-term lease obligations$627 $1,265,514 
________________________
(1)Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,350.1 million for operating leases.
Finance Lease, Future Minimum Lease Payments
The following table presents as of October 1, 2023, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2024$757 $217,591 
2025651 217,931 
202618 202,189 
2027— 192,088 
2028— 154,422 
Thereafter— 971,239 
Total future lease payments (1)$1,426 $1,955,460 
Less: imputed interest(110)(547,428)
Present value of lease liabilities$1,316 $1,408,032 
Less current portion(689)(142,518)
Long-term lease obligations$627 $1,265,514 
________________________
(1)Total future lease payments include non-cancellable commitments of $1.4 million for finance leases and $1,350.1 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):
20232022
Buildings$1,342 $1,342 
Equipment6,140 5,559 
Less accumulated amortization(6,511)(6,047)
$971 $854 
Rental Income The following table presents rental income (in thousands):
20232022
Owned PropertiesLeased PropertiesTotalOwned PropertiesLeased PropertiesTotal
Operating lease income - franchise$17,805 $225,392 $243,197 $19,221 $212,552 $231,773 
Variable lease income - franchise12,700 108,010 120,710 12,418 96,002 108,420 
Amortization of sublease assets and liabilities, net— 684 684 — 198 198 
Franchise rental revenues$30,505 $334,086 $364,591 $31,639 $308,752 $340,391 
Operating lease income - closed restaurants and other (1)$76 $7,387 $7,463 $60 $6,347 $6,407 
________________________
(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 1, 2023, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
October 1,
2023
Fiscal year:
2024$240,756 
2025251,366 
2026237,214 
2027231,827 
2028188,554 
Thereafter1,120,748 
Total minimum rental receipts$2,270,465 
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 1,
2023		October 2,
2022
Land$78,665 $75,967 
Buildings792,177 771,567 
Equipment63 2,750 
870,905 850,284 
Less accumulated depreciation(672,137)(663,109)
$198,768 $187,175