Leases (Tables)

9 Months Ended

Oct. 01, 2017

Rental expense for operating leases consists of the following components:



	Three Months Ended				Nine Months Ended
	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
Rental expense:
Minimum rentals	$	23,997	$	19,137	$	66,701	$	59,139
Contingent rentals	5,395		5,254		14,405		13,786
Total rental expense (a)	$	29,392	$	24,391	$	81,106	$	72,925

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(a)	Amounts exclude sublease income of $35,022 and $92,434 recognized during the three and nine months ended October 1, 2017, respectively, and $25,127 and $68,400 recognized during the three and nine months ended October 2, 2016, respectively.

Schedule of Rent Income

Rental income for operating leases and subleases consists of the following components:



	Three Months Ended				Nine Months Ended
	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
Rental income:
Minimum rentals	$	44,682	$	31,902	$	124,847	$	87,409
Contingent rentals	5,593		5,427		15,280		15,011
Total rental income	$	50,275	$	37,329	$	140,127	$	102,420

Schedule of Future Minimum Rental Payments for Operating Leases

The following table illustrates the Company’s future minimum rental payments and rental receipts for non-cancelable leases and subleases, including rental receipts for direct financing leases as of October 1, 2017. Rental receipts below are presented separately for owned properties and for leased properties based on the classification of the underlying lease.



	Rental Payments					Rental Receipts
Fiscal Year	Capital Leases			Operating Leases		Capital Leases		Operating Leases		Owned Properties
2017 (a)	$	11,989		$	24,894	$	15,868	$	18,782	$	13,436
2018	43,406			93,431		60,844		75,167		53,896
2019	42,717			93,272		61,368		75,267		54,866
2020	43,660			92,434		62,469		74,983		55,489
2021	45,249			91,892		64,260		74,672		57,102
Thereafter	748,736			1,188,165		1,045,693		973,428		1,008,243
Total minimum payments	$	935,757		$	1,584,088	$	1,310,502	$	1,292,299	$	1,243,032
Less interest	(499,703		)
Present value of minimum capital lease payments (b)	$	436,054

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(a)	Represents future minimum rental payments and rental receipts for non-cancelable leases and subleases for the remainder of our 2017 fiscal year.


(b)	The present value of minimum capital lease payments of $6,608 and $429,446 are included in “Current portion of long-term debt” and “Long-term debt,” respectively.

Schedule of Property Subject to or Available for Operating Lease

Properties owned by the Company and leased to franchisees and other third parties under operating leases include:



	October 1, 2017			January 1, 2017
Land	$	271,840		$	271,160
Buildings and improvements	312,796			312,067
Restaurant equipment	1,491			1,507
	586,127			584,734
Accumulated depreciation and amortization	(122,970		)	(110,166		)
	$	463,157		$	474,568

Schedule of Capital Leased Assets

Our net investment in direct financing leases is as follows:



	October 1, 2017			January 1, 2017
Future minimum rental receipts	$	630,352		$	401,452
Unearned interest income	(416,221		)	(277,747		)
Net investment in direct financing leases	214,131			123,705
Net current investment in direct financing leases (a)	(482		)	(101		)
Net non-current investment in direct financing leases (b)	$	213,649		$	123,604

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(a)	Included in “Accounts and notes receivable, net.”


(b)	Included in “Net investment in direct financing leases.”