LEASES

The Company’s operations utilize property, facilities, equipment and vehicles owned by the Company or leased from others. Buildings and facilities leased from others are primarily for restaurants and support facilities. Restaurants are operated under lease arrangements that generally provide for a fixed base rent and, in some instances, contingent rent based on a percentage of gross operating profit or net revenues in excess of a defined amount. Initial terms of land and restaurant building leases generally have terms of 20 years, exclusive of options to renew. Leases of equipment primarily consist of restaurant equipment, computer systems and vehicles. The Company subleases facilities to certain franchisees and other non-related parties which are recorded on a straight-line basis.

Information regarding the Company’s future lease obligations at December 27, 2017 is as follows (in thousands):



	Capital Leases					Operating Leases
For the Years Ending	Minimum Lease Payments			Minimum Sublease Income		Minimum Lease Payments		Minimum Sublease Income
December 26, 2018	$	172		$	—	$	25,270	$	932
December 25, 2019	95			—		25,102		728
December 30, 2020	54			—		23,818		455
December 29, 2021	54			—		22,669		466
December 28, 2022	45			—		21,706		466
Thereafter	—			—		179,582		1,158
Total	$	420		$	—	$	298,147	$	4,205
Less: imputed interest (11.0% to 14.8%)	(104		)
Present value of capital lease obligations	316
Less: current maturities	(132		)
Noncurrent portion	$	184

Net rent expense is as follows (in thousands):



For the Years Ended	December 27, 2017			December 28, 2016			December 30, 2015
Base rent	$	24,384		$	22,089		$	19,944
Contingent rent	259			209			96
Less: sublease income	(2,334		)	(2,540		)	(2,620		)
Net rent expense	$	22,309		$	19,758		$	17,420

Base rent and contingent rent are included in occupancy and other operating expenses, while sublease income is included in franchise revenue in the accompanying consolidated statements of income. Sublease income includes contingent rental income of $0.8 million, $1.0 million, and $1.1 million for fiscal 2017, 2016, and 2015, respectively.

The Company is a lessor for certain property, facilities and equipment owned by the Company and leased to others, principally franchisees, under noncancelable leases with initial terms ranging from three to nine years. The lease agreements generally provide for a fixed base rent and, in some instances, contingent rent based on a percentage of gross operating profit or net revenues. Total rental income included in franchise revenue in the accompanying consolidated statements of income for leased property was $0.5 million, $0.5 million and $0.4 million for fiscal 2017, 2016, and 2015, respectively.

Minimum future rental income for company-operated properties under noncancelable operating leases, which is recorded on a straight-line basis, in effect as of December 27, 2017, is as follows (in thousands):



For the Years Ending
December 26, 2018	$	274
December 25, 2019	184
December 30, 2020	188
December 29, 2021	146
December 28, 2022	132
Thereafter	352
Total future minimum rental income	$	1,276