8. LEASES

As lessee — We lease restaurants and other facilities, which generally have renewal clauses of 1 to 20 years exercisable at our option. In some instances, these leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurant and other facility leases also have rent escalation clauses and require the payment of property taxes, insurance and maintenance costs. We also lease certain restaurant and office equipment. Minimum rental obligations are accounted for on a straight-line basis over the term of the initial lease, plus lease option terms for certain locations.

The components of rent expense were as follows in each fiscal year (in thousands):



	2016			2015			2014
Minimum rentals	$	222,437		$	212,722		$	213,082
Contingent rentals	2,943			2,549			1,986
Total rent expense	225,380			215,271			215,068
Less rental expense on subleased properties	(145,173		)	(141,946		)	(139,976		)
Net rent expense	$	80,207		$	73,325		$	75,092

The following table presents as of October 2, 2016, future minimum lease payments under capital and operating leases, including leases recorded as lease obligations relating to continuing and discontinued operations (in thousands):



Fiscal Year	Capital Leases			Operating Leases
2017	$	3,423		$	235,048
2018	3,295			206,170
2019	2,911			198,043
2020	2,808			171,101
2021	2,810			153,809
Thereafter	7,107			530,142
Total minimum lease payments	22,354			$	1,494,313
Less amount representing interest, 3.6% weighted average interest rate	(3,831		)
Present value of obligations under capital leases	18,523
Less current portion	(2,818		)
Long-term capital lease obligations	$	15,705

Total future minimum lease payments of approximately $1.0 billion included in the table above are expected to be recovered under our non-cancelable operating subleases.

Assets recorded under capital leases are included in property and equipment, and consisted of the following at each fiscal year-end (in thousands):



	2016			2015
Buildings	$	9,716		$	10,716
Equipment	17,855			16,770
Less accumulated amortization	(10,325		)	(8,453		)
	$	17,246		$	19,033

Amortization of assets under capital leases is included in depreciation and amortization expense in the consolidated statements of earnings.

As lessor — We lease or sublease restaurants to certain franchisees and others under agreements that generally provide for the payment of percentage rentals in excess of stipulated minimum rentals, usually for a period up to 20 years. Most of our leases have rent escalation clauses and renewal clauses of 5 to 20 years. The following table summarizes rents received under these agreements in each fiscal year (in thousands):



	2016		2015		2014
Total rental income (1)	$	238,375	$	232,264	$	222,443
Contingent rentals	$	31,632	$	28,348	$	19,551

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(1)	Includes contingent rentals.

The minimum rents receivable expected to be received under these non-cancelable operating leases and subleases, including leases recorded as lease obligations relating to continuing and discontinuing operations, and excluding contingent rentals, as of October 2, 2016 are as follows (in thousands):



Fiscal Year
2017	$	207,754
2018	187,029
2019	202,471
2020	199,072
2021	210,909
Thereafter	1,200,831
Total minimum future rent receivable	$	2,208,066

Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end (in thousands):



	2016			2015
Land	$	73,527		$	72,248
Buildings	674,690			678,044
Equipment	4,382			4,374
	752,599			754,666
Less accumulated depreciation	(480,600		)	(453,056		)
	$	271,999		$	301,610