Leases

12 Months Ended

Sep. 29, 2019

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):



	2019			2018			2017
Minimum rentals	$	184,587		$	184,106		$	185,696
Contingent rentals	2,255			2,221			2,419
Total rent expense	186,842			186,327			188,115
Less rental expense on subleased properties	(170,651		)	(162,640		)	(145,728		)
Net rent expense	$	16,191		$	23,687		$	42,387

The following table presents as of September 29, 2019, future minimum lease payments under capital and operating leases, including leases recorded as lease obligations (in thousands):



Fiscal Year	Capital Leases			Operating Leases
2020	$	879		$	193,313
2021	879			186,226
2022	879			145,794
2023	864			117,753
2024	396			87,420
Thereafter	40			363,505
Total minimum lease payments	3,937			$	1,094,011
Less amount representing interest, 3.40% weighted-average interest rate	(343		)
Present value of obligations under capital leases	3,594
Less current portion	(774		)
Long-term capital lease obligations	$	2,820

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



	2019			2018
Buildings	$	1,342		$	3,217
Equipment	5,538			5,519
Less accumulated amortization	(3,904		)	(4,621		)
	$	2,976		$	4,115

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):



	2019		2018		2017
Total rental income (1)	$	277,623	$	264,432	$	237,004
Contingent rentals	$	38,506	$	35,148	$	33,168

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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 29, 2019 are as follows (in thousands):



Fiscal Year
2020	$	239,219
2021	255,315
2022	231,394
2023	224,605
2024	199,442
Thereafter	1,215,811
Total minimum future rent receivable	$	2,365,786

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



	2019			2018
Land	$	91,130		$	89,256
Buildings	817,400			824,964
Equipment	537			611
	909,067			914,831
Less accumulated depreciation	(632,197		)	(607,900		)
	$	276,870		$	306,931