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Leasing Arrangements

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Leasing Arrangements

Leasing Arrangements

At December 31, 2017, the Company was the lessee at 12,262 restaurant locations through ground leases (the Company leases the land and the Company generally 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-restaurant related leases such as offices, vehicles and office equipment.

The following table provides detail of rent expense:

In millions	2017				2016				2015
Company-operated restaurants:
U.S.	$	37.4			$	48.6			$	59.2
Outside the U.S.	427.2				613.3				652.7
Total	464.6				661.9				711.9
Franchised restaurants:
U.S.	488.6				471.2				463.7
Outside the U.S.	609.3				589.8				565.0
Total	1,097.9				1,061.0				1,028.7
Other	82.0				91.3				98.4
Total rent expense	$	1,644.5			$	1,814.2			$	1,839.0

Rent expense included percent rents in excess of minimum rents (in millions) as follows–Company-operated restaurants: 2017–$115.6; 2016–$135.0; 2015–$146.6. Franchised restaurants: 2017–$204.9; 2016–$186.4; 2015–$178.8.

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

In millions	Restaurant					Other					Total
2018		$	1,096.8				$	55.1			$	1,151.9
2019		1,037.0					50.0				1,087.0
2020		954.0					42.7				996.7
2021		867.0					36.5				903.5
2022		778.7					26.8				805.5
Thereafter		6,829.1					83.2				6,912.3
Total minimum payments		$	11,562.6				$	294.3			$	11,856.9

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- References

No definition available.

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- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-URI http://asc.fasb.org/topic&trid=2208923

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