Leases

12 Months Ended

Dec. 31, 2016

At December 31, 2016, we operated approximately 2,800 restaurants, leasing the underlying land and/or building in approximately 2,000 of those restaurants with the vast majority of our commitments expiring within 20 years from the inception of the lease. In addition, the Company leases or subleases approximately 700 units to franchisees, principally in the U.S., United Kingdom, Germany and France.

We also lease office space for headquarters and support functions, as well as certain office and restaurant equipment. We do not consider any of these individual leases material to our operations. Most leases require us to pay related executory costs, which include property taxes, maintenance and insurance.

Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases are set forth below:



	Commitments				Lease Receivables
	Capital		Operating		Direct Financing		Operating
2017	$	16	$	171	$	3	$	40
2018	16		148		2		36
2019	15		128		2		30
2020	15		101		2		23
2021	14		85		1		20
Thereafter	105		571		5		86
	$	181	$	1,204	$	15	$	235

At December 31, 2016 and December 26, 2015, the present value of minimum payments under capital leases was $121 million and $134 million, respectively. At December 31, 2016, unearned income associated with direct financing lease receivables was $2 million.

The details of rental expense and income are set forth below:



	2016		2015		2014
Rental expense
Minimum	$	213	$	221	$	243
Contingent	29		34		37
	$	242	$	255	$	280
Rental income	$	79	$	73	$	83