Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases

Schedule of average terms of lease portfolios

The Company’s leases are classified as operating leases, with terms as follows:

	Average lease term
Domestic Company-owned restaurants	Five years, plus at least one renewal
United Kingdom franchise-owned restaurants	15 years
Domestic commissary locations	10 years, plus at least one renewal
Domestic and international tractors and trailers	Five to seven years
Domestic and international commissary and office equipment	Three to five years

Schedule of operating lease assets and liabilities

The following schedule details the total operating lease assets and liabilities on the Condensed Consolidated Balance Sheet as of March 31, 2019 and the date of adoption on December 31, 2018:

Leases			March 31,		December 31,
(thousands)	Classification		2019		2018
Assets
Operating lease assets, net	Right-of-Use Assets	$	150,216	$	161,027
Operating lease assets, net	Assets Held for Sale		3,900		—
Total lease assets		$	154,116	$	161,027
Liabilities
Current Operating	Current Lease Liabilities		22,546		25,348
Noncurrent Operating	Long-term Lease Liabilities		130,391		137,511
Operating leases held for sale	Accrued Expenses and other current liabilities		4,065		—
Total lease liabilities		$	157,002	$	162,859

Schedule of components of lease expense

Lease expense for the first quarter of 2019 is as follows:

		Three Months Ended
(in thousands)		March 31, 2019
Operating lease cost	$	10,794
Short-term lease cost		791
Variable lease cost		2,646
Total lease costs	$	14,231
Sublease income		(2,339)
Total lease costs, net of sublease income	$	11,892

Schedule of future minimum lease payments and sublease income under contractually-obligated leases

Future minimum lease payments and sublease income under contractually-obligated leases as of March 31, 2019 are as follows (in thousands):

Fiscal Year	Lease Costs		Expected Sublease Income
Remainder of 2019	$	26,018	$	6,463
2020		35,361		8,259
2021		30,600		7,981
2022		25,042		7,719
2023		19,223		7,463
Thereafter		67,133		44,077
Total future minimum lease payments		203,377		81,962
Less imputed interest		(46,375)		—
Less lease liabilities held for sale (1)		(4,065)		—
Total present value of Lease Liabilities	$	152,937	$	81,962

(1) Lease liabilities of $4.1 million are separately reported in the Company’s Condensed Consolidated Balance Sheets under the caption “Accrued expenses and other current liabilities”.

Future minimum lease payments and sublease income under contractually-obligated leases as of December 30, 2018 were as follows:

Fiscal Year	Lease Costs		Expected Sublease Income
2019	$	40,834	$	8,079
2020		36,631		8,061
2021		31,159		7,818
2022		25,188		7,462
2023		18,694		7,182
Thereafter		57,304		42,518
Total future minimum lease payments		209,810		81,120

Schedule of supplemental cash flow information

Supplemental cash flow information related to leases for the periods reported is as follows:

		Three Months Ended
(in thousands, except for weighted-average amounts)		March 31, 2019
Cash paid for operating lease liabilities	$	10,116
Right-of-use assets obtained in exchange for new operating lease liabilities		1,040
Cash received from sublease income		2,061
Weighted-average remaining lease term of operating leases		7.34
Weighted-average discount rate of operating leases		6.91%