Leases

9 Months Ended

Jun. 30, 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 June 30, 2020:

Lease cost	Classification	Total
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	1,665
Variable lease cost	Occupancy		20
Sublease income	Occupancy		(135	)
		$	1,550

Components of operating lease costs are as follows for the three fiscal quarters ended June 30, 2020:

Lease cost	Classification	Total
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	5,436
Variable lease cost	Occupancy		60
Sublease income	Occupancy		(365	)
		$	5,131

Weighted average lease term and discount rate are as follows:

	June 30, 2020
Weighted average remaining lease term (in years)		10.6
Weighted average discount rate		5.0	%

Supplemental cash flow disclosures for the three fiscal quarters ended June 30, 2020:

	June 30, 2020
Cash paid for operating lease liabilities	$	5,125
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$	3,077

Supplemental balance sheet disclosures:

		June 30, 2020
Right-of-use assets	Operating lease assets	$	50,864
Current lease liabilities	Operating lease liability	$	4,629
Non-current lease liabilities	Operating lease liability, less current portion		55,462
Total lease liabilities		$	60,091

Future minimum rent payments for our operating leases for each of the next five years as of June 30, 2020 are as follows:

Fiscal year ending:	Total
Remainder of 2020	$	2,049
2021		7,477
2022		7,519
2023		7,601
2024		7,453
Thereafter		46,415
Total minimum lease payments		78,514
Less: imputed interest		(18,423	)
Present value of lease liabilities	$	60,091

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.