Leases (Tables)

12 Months Ended

Dec. 26, 2021

Leases

Schedule of average terms of lease portfolios

	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 right-of-use assets and lease liabilities on the Consolidated Balance Sheets as of December 26, 2021 and December 27, 2020 (in thousands):

			December 26,		December 27,
Leases	Classification		2021		2020
Assets
Finance lease assets, net	Finance lease right-of-use assets, net	$	20,907	$	16,840
Operating lease assets, net	Operating lease right-of-use assets		176,256		148,110
Total lease assets		$	197,163	$	164,950
Liabilities
Current finance lease liabilities	Current finance lease liabilities	$	4,977	$	3,545
Current operating lease liabilities	Current operating lease liabilities		22,543		23,538
Noncurrent finance lease liabilities	Long-term finance lease liabilities		16,580		13,531
Noncurrent operating lease liabilities	Long-term operating lease liabilities		160,672		124,666
Total lease liabilities		$	204,772	$	165,280

Schedule of components of lease expense

		Year Ended		Year Ended
(in thousands)		December 26, 2021		December 27, 2020
Finance lease:
Amortization of right-of-use assets	$	4,980	$	2,342
Interest on lease liabilities		1,140		606
Operating lease:
Operating lease cost		43,072		40,026
Short-term lease cost		2,032		3,960
Variable lease cost		8,572		6,503
Total lease costs	$	59,796	$	53,437
Sublease income		(12,039)		(10,407)
Total lease costs, net of sublease income	$	47,757	$	43,030

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

Future minimum lease payments under contractually-obligated leases and associated sublease income as of December 26, 2021 are as follows (in thousands):

Fiscal Year	Finance Lease Costs		Operating Lease Costs		Expected Sublease Income
2022	$	5,969	$	33,323	$	10,704
2023		5,919		32,174		10,515
2024		4,872		31,069		10,302
2025		3,242		26,794		9,835
2026		2,265		22,727		9,107
Thereafter		1,748		96,187		44,700
Total future minimum lease payments	$	24,015	$	242,274	$	95,163
Less imputed interest		(2,458)		(59,059)		—
Total present value of lease liabilities	$	21,557	$	183,215	$	95,163

Schedule of supplemental cash flow information

	Year Ended
(in thousands)	December 26, 2021		December 27, 2020		December 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1,140	$	606	$	269
Financing cash flows from finance leases		4,566		2,139		781
Operating cash flows from operating leases (a)		38,530		37,113		40,152
Right-of-use assets obtained in exchange for new finance lease liabilities		9,486		9,152		10,199
Right-of-use assets obtained in exchange for new operating lease liabilities (b)		64,420		30,266		20,903
Cash received from sublease income		11,597		10,545		10,139
Weighted-average remaining lease term (in years):
Finance leases		4.51		4.71		4.75
Operating leases		8.30		7.00		7.00
Weighted-average discount rate:
Finance leases		5.08%		5.34%		6.38%
Operating leases		6.20%		6.65%		6.94%
(a) Included within the change in Other assets and liabilities within the Consolidated Statements of Cash Flows offset by non-cash operating lease right-of-use asset amortization and lease liability accretion.
(b) Includes right-of-use assets of approximately $21.8 million for the year ended December 26, 2021 associated with the lease commencement of our Atlanta, Georgia corporate office.