Leasing Arrangements

12 Months Ended

Dec. 31, 2016

At December 31, 2016, the Company was the lessee at 14,763 restaurant locations through ground leases (the Company leases the land and the Company or franchisee owns the building) and through improved leases (the Company leases land and buildings). Lease terms for most restaurants, where market conditions allow, are generally for 20 years and, in many cases, provide for rent escalations and renewal options, with certain leases providing purchase options. Escalation terms vary by market with examples including fixed-rent escalations, escalations based on an inflation index, and fair-value market adjustments. The timing of these escalations generally ranges from annually to every five years. For most locations, the Company is obligated for the related occupancy costs including property taxes, insurance and maintenance; however, for franchised sites, the Company requires the franchisees to pay these costs. In addition, the Company is the lessee under non-cancelable leases covering certain offices and vehicles.

The following table provides detail of rent expense:



In millions	2016		2015		2014
Company-operated restaurants:
U.S.	$	48.6	$	59.2	$	61.3
Outside the U.S.	613.3		652.7		708.3
Total	661.9		711.9		769.6
Franchised restaurants:
U.S.	471.2		463.7		446.3
Outside the U.S.	589.8		565.0		610.1
Total	1,061.0		1,028.7		1,056.4
Other	91.3		98.4		106.3
Total rent expense	$	1,814.2	$	1,839.0	$	1,932.3

Rent expense included percent rents in excess of minimum rents (in millions) as follows–Company-operated restaurants: 2016–$135.0; 2015–$146.6; 2014–$164.2. Franchised restaurants: 2016–$186.4; 2015–$178.8; 2014–$182.8.

Future minimum payments required under existing operating leases with initial terms of one year or more are:



In millions	Restaurant			Other			Total (1)
2017		$	1,233.6		$	69.4	$	1,303.0
2018		1,139.4			60.5		1,199.9
2019		1,049.9			52.6		1,102.5
2020		957.5			43.3		1,000.8
2021		854.6			37.3		891.9
Thereafter		6,644.1			110.3		6,754.4
Total minimum payments		$	11,879.1		$	373.4	$	12,252.5

(1) Includes future minimum lease payments for businesses in markets considered held for sale as of the date of the Company's filing of this report on Form 10-K. These lease payments per year (in millions) are as follows: 2017- $251.1; 2018- $206.7; 2019- $178.6; 2020- $157.3; 2021- $136.4; Thereafter- $593.3.