Note 9. Leases

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed basic rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally are not less than 15 years, exclusive of options to renew. Leases of other equipment consist primarily of restaurant equipment, computer systems and vehicles.

We lease certain owned and leased property, facilities and equipment to others. Our net investment in direct financing leases receivable, of which the current portion is recorded in prepaid and other current assets and the long-term portion is recorded in other noncurrent assets in our Consolidated Balance Sheets, was as follows:

	December 28, 2011		December 29, 2010
	(In thousands)
Total minimum rents receivable	$	20,622	$	17,969
Estimated residual value of leased property (unguaranteed)		2,200		1,900
		22,822		19,869
Less unearned income		17,245		14,676
Net investment in direct financing leases receivable	$	5,577	$	5,193

Minimum future lease commitments and amounts to be received as lessor or sublessor under non-cancelable leases, including leases for both open and closed units, at December 28, 2011 were as follows:

	Commitments				Lease Receipts
	Capital		Operating		Direct Financing		Operating
	(In thousands)
2012	$	7,973	$	36,658	$	1,252	$	33,851
2013		6,874		33,047		1,252		32,187
2014		5,717		30,814		1,252		30,549
2015		4,063		26,720		1,252		27,487
2016		2,908		23,913		1,252		23,871
Thereafter		13,653		113,296		14,362		134,321
Total		41,188	$	264,448	$	20,622	$	282,266
Less imputed interest		18,731
Present value of capital lease obligations	$	22,457

Rent expense is a component of both occupancy expense and costs of franchise and license revenue in our Consolidated Statements of Income. Lease and sublease rental income is a component of franchise and license revenue in our Consolidated Statements of Income. Net rental expense was comprised of the following:

	Fiscal Year Ended
	December 28, 2011		December 29, 2010		December 30, 2009
	(In thousands)
Rental expense:
Base rents	$	40,278	$	42,575	$	43,585
Contingent rents		5,575		4,374		4,657
Total rental expense	$	45,853	$	46,949	$	48,242
Rental income:
Base rents	$	35,337	$	35,882	$	34,265
Contingent rents		2,812		2,660		3,299
Total rental income	$	38,149	$	38,542	$	37,564
Net rental expense:
Base rents	$	4,941	$	6,693	$	9,320
Contingent rents		2,763		1,714		1,358
Net rental expense	$	7,704	$	8,407	$	10,678