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):



	2018			2017			2016
Minimum rentals	$	184,106		$	185,696		$	188,486
Contingent rentals	2,221			2,419			2,199
Total rent expense	186,327			188,115			190,685
Less rental expense on subleased properties	(162,640		)	(145,728		)	(145,119		)
Net rent expense	$	23,687		$	42,387		$	45,566

The following table presents as of September 30, 2018, 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
2019	$	955		$	193,439
2020	876			173,953
2021	876			163,038
2022	876			124,357
2023	863			96,047
Thereafter	437			388,150
Total minimum lease payments	4,883			$	1,138,984
Less amount representing interest, 3.60% weighted-average interest rate	(480		)
Present value of obligations under capital leases	4,403
Less current portion	(834		)
Long-term capital lease obligations	$	3,569

Total future minimum lease payments of approximately $1.5 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):



	2018			2017
Buildings	$	3,217		$	7,301
Equipment	5,519			10,617
Less accumulated amortization	(4,621		)	(8,753		)
	$	4,115		$	9,165

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):



	2018		2017		2016
Total rental income (1)	$	264,432	$	237,004	$	238,228
Contingent rentals	$	35,148	$	33,168	$	31,632

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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 September 30, 2018 are as follows (in thousands):



Fiscal Year
2019	$	239,015
2020	236,136
2021	251,835
2022	228,089
2023	221,261
Thereafter	1,359,302
Total minimum future rent receivable	$	2,535,638

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



	2018			2017
Land	$	89,256		$	88,647
Buildings	824,964			759,003
Equipment	611			342
	914,831			847,992
Less accumulated depreciation	(607,900		)	(540,851		)
	$	306,931		$	307,141