Leases

6 Months Ended

Mar. 31, 2020

Lessee Disclosure [Abstract]

Leases

Note 10. Leases

The Company determines if a contract contains a lease at inception. The Company's material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 years to 20 years, most of which include renewal options of 10 to 15 years. The lease term is generally the minimum of the noncancelable period or the lease term including renewal options which are reasonably certain of being exercised up to a term of approximately 20 years.

Some of the leases provide for base rent, plus additional rent based on gross sales, as defined in each lease agreement. The Company is also generally obligated to pay certain real estate taxes, insurance and common area maintenance charges, and various other expenses related to properties, which are expensed as incurred.

Components of operating lease costs are as follows for the fiscal quarter ended March 31, 2020:

Lease cost	Classification	Total
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	1,836
Variable lease cost	Occupancy		20
Sublease income	Occupancy		(130	)
		$	1,726

Components of operating lease costs are as follows for the two fiscal quarters ended March 31, 2020:

Lease cost	Classification	Total
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	3,770
Variable lease cost	Occupancy		40
Sublease income	Occupancy		(230	)
		$	3,580

Weighted average lease term and discount rate are as follows:

	March 31, 2020
Weighted average remaining lease term (in years)	10.8
Weighted average discount rate	5.0%

Supplemental cash flow disclosures for the two fiscal quarters ended March 31, 2020:

	March 31, 2020
Cash paid for operating lease liabilities	$	3,504
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$	2,095

Supplemental balance sheet disclosures:

		March 31, 2020
Right-of-use assets	Operating lease assets	$	50,898
Current lease liabilities	Operating lease liability	$	4,634
Non-current lease liabilities	Operating lease liability, less current portion		55,589
Total lease liabilities		$	60,223

Future minimum rent payments for our operating leases for each of the next five years as of March 31, 2020 are as follows:

Fiscal year ending:	Total
Remainder of 2020	$	3,817
2021		7,491
2022		7,456
2023		7,547
2024		7,504
Thereafter		44,985
Total minimum lease payments		78,800
Less: imputed interest		(18,577	)
Present value of lease liabilities	$	60,223

As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting, future minimum rent payments for our operating leases for each of the next five years and in total are as follows as of September 24, 2019:

Fiscal year ending:	Total
2020	$	7,256
2021		6,884
2022		6,677
2023		6,348
2024		5,928
Thereafter		18,988
Total minimum lease payments		52,081
Less: sublease rentals		(1,058	)
Net minimum lease payments	$	51,023

The above future minimum rental amounts exclude the amortization of deferred lease incentives, renewal options that are not reasonably assured of renewal, and contingent rent. The Company generally has escalating rents over the term of the leases and records rent expense on a straight-line basis.