Leases

The Company is the lessee on certain land leases (the Company leases the land and erects a building) or improved leases (lessor owns the land and building) covering restaurants and other properties. In addition, the Company has leased and subleased land and buildings to others. Many of these leases and subleases provide for future rent escalation and renewal options. In addition, contingent rentals, determined as a percentage of annual sales by our franchisees, are stipulated in certain prime lease and sublease agreements. The Company is generally obligated for the cost of property taxes, insurance, and maintenance relating to these leases. Such costs are typically charged to the sublessee based on the terms of the sublease agreements. The Company also leases certain office equipment and a fleet of automobiles under noncancelable operating leases. Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands):



	December 30, 2017			December 31, 2016
Leased property under capital leases (included in property and equipment)	$	10,097		10,081
Accumulated depreciation	(4,442		)	(4,055	)
Net leased property under capital leases	$	5,655		6,026
Capital lease obligations:
Current	$	596		589
Long-term	7,180			7,550
Total capital lease obligations	$	7,776		8,139

Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands):



	December 30, 2017			December 31, 2016
Land	$	33,430		32,646
Buildings	47,792			47,723
Leasehold improvements	147,743			149,027
Store, production, and other equipment	150			150
Construction in progress	1,741			567
Assets leased to others, gross	230,856			230,113
Accumulated depreciation	(94,450		)	(86,957	)
Assets leased to others, net	$	136,406		143,156

Future minimum rental commitments to be paid and received by the Company at December 30, 2017 for all noncancelable leases and subleases are as follows (in thousands):



	Payments				Receipts		Net leases
	Capital leases		Operating leases		Subleases		Net leases
Fiscal year:
2018	$	1,633	58,819		(72,068	)	(11,616	)
2019	1,465		58,169		(70,570	)	(10,936	)
2020	1,258		55,494		(67,167	)	(10,415	)
2021	1,291		53,320		(63,460	)	(8,849	)
2022	1,329		49,627		(57,399	)	(6,443	)
Thereafter	12,265		356,290		(329,887	)	38,668
Total minimum rental commitments	19,241		$	631,719	(660,551	)	(9,591	)
Less amount representing interest	11,465
Present value of minimum capital lease obligations	$	7,776

Rental expense under operating leases associated with franchised locations and company-operated locations is included in occupancy expenses—franchised restaurants and company-operated restaurant expenses, respectively, in the consolidated statements of operations. Rental expense under operating leases for all other locations, including corporate facilities, is included in general and administrative expenses, net, in the consolidated statements of operations. Total rental expense for all operating leases consisted of the following (in thousands):



	Fiscal year ended
	December 30, 2017		December 31, 2016	December 26, 2015
Base rentals	$	55,019	54,517	54,290
Contingent rentals	6,664		6,182	6,348
Total rental expense	$	61,683	60,699	60,638

Total rental income for all leases and subleases consisted of the following (in thousands):



	Fiscal year ended
	December 30, 2017		December 31, 2016	December 26, 2015
Base rentals	$	73,597	70,962	70,033
Contingent rentals	31,046		30,058	30,389
Total rental income	$	104,643	101,020	100,422