Leases (Tables)

9 Months Ended

Sep. 30, 2018

Rental expense for operating leases consists of the following components:



	Three Months Ended				Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
Rental expense:
Minimum rentals	$	22,814	$	23,997	$	72,738	$	66,701
Contingent rentals	5,061		5,395		14,522		14,405
Total rental expense (a) (b)	$	27,875	$	29,392	$	87,260	$	81,106

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(a)	Amounts include rental expense related to (1) leases for Company-operated restaurants recorded to “Cost of sales,” (2) leased properties that are subsequently leased to franchisees recorded to “Franchise rental expense” and (3) leases for corporate offices and equipment recorded to “General and administrative.”


(b)	Amounts exclude sublease income of $34,097 and $103,353 recognized during the three and nine months ended September 30, 2018, respectively, and $35,022 and $92,434 recognized during the three and nine months ended October 1, 2017, respectively.

Schedule of Rent Income

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



	Three Months Ended				Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
Rental income:
Minimum rentals	$	45,291	$	44,682	$	137,549	$	124,847
Contingent rentals	5,183		5,593		14,561		15,280
Total rental income	$	50,474	$	50,275	$	152,110	$	140,127

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 September 30, 2018. 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
2018 (a)	$	12,967		$	25,217	$	16,007	$	18,911	$	13,488
2019	45,323			95,216		64,376		76,044		54,736
2020	46,252			94,079		65,467		75,810		55,348
2021	47,849			93,580		67,267		75,771		56,943
2022	48,937			93,304		68,451		76,222		58,514
Thereafter	751,317			1,145,074		1,034,322		935,083		948,620
Total minimum payments	$	952,645		$	1,546,470	$	1,315,890	$	1,257,841	$	1,187,649
Less interest	(494,298		)
Present value of minimum capital lease payments (b)	$	458,347

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(a)	Represents future minimum rental payments and rental receipts for non-cancelable leases and subleases for the remainder of the 2018 fiscal year.


(b)	The present value of minimum capital lease payments of $8,041 and $450,306 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:



	September 30, 2018			December 31, 2017
Land	$	272,730		$	272,411
Buildings and improvements	313,706			313,108
Restaurant equipment	2,443			2,444
	588,879			587,963
Accumulated depreciation and amortization	(139,802		)	(128,003		)
	$	449,077		$	459,960

Schedule of Capital Leased Assets

Our net investment in direct financing leases is as follows:



	September 30, 2018			December 31, 2017
Future minimum rental receipts	$	633,039		$	662,889
Unearned interest income	(406,230		)	(433,175		)
Net investment in direct financing leases	226,809			229,714
Net current investment in direct financing leases (a)	(660		)	(625		)
Net non-current investment in direct financing leases	$	226,149		$	229,089

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