Leases

The Company leases the majority of all IHOP restaurants. The restaurants are subleased to IHOP franchisees or in a few instances operated by the Company. These noncancelable leases and subleases consist primarily of land, buildings and improvements.

The following is the Company's net investment in direct financing lease receivables:



	December 31,
	2011			2010
	(In millions)
Total minimum rents receivable	$	180.0		$	198.0
Less unearned income	(80.0		)	(93.4		)
Net investment in direct financing lease receivables	100.0			104.6
Less current portion	(5.4		)	(4.6		)
Long-term direct financing lease receivables	$	94.6		$	100.0

Contingent rental income, which is the amount above and beyond base rent, for the years ended December 31, 2011, 2010 and 2009 was $13.1 million, $14.4 million and $15.6 million, respectively.

The following is the Company's net investment in equipment leases receivable:



	December 31,
	2011			2010
	(In millions)
Total minimum leases receivable	$	234.2		$	259.7
Less unearned income	(102.7		)	(120.7		)
Net investment in equipment leases receivables	131.5			139.0
Less current portion	(6.5		)	(6.9		)
Long-term equipment leases receivable	$	125.0		$	132.1

The following are minimum future lease payments on noncancelable leases as lessee at December 31, 2011:



	Capital Leases			Operating Leases
	(In millions)
2012	$	24.7		$	76.9
2013	24.8			77.7
2014	25.0			77.4
2015	24.7			78.0
2016	23.9			76.4
Thereafter	117.2			656.4
Total minimum lease payments	240.3			$	1,042.8
Less interest	(96.3		)
Capital lease obligations	144.0
Less current portion (1)	(9.6		)
Long-term capital lease obligations	$	134.4

_____________________________


(1)	Included in current maturities of capital lease and financing obligations on the consolidated balance sheet.

The asset cost and carrying amount on company-owned property leased at December 31, 2011 was $89.8 million and $69.5 million, respectively. The asset cost and carrying amount on company-owned property leased at December 31, 2010, was $94.0 million and $75.1 million, respectively. The asset cost and carrying amounts represent the land and building asset values and net book values on sites leased to franchisees.

The minimum future lease payments shown above have not been reduced by the following future minimum rents to be received on noncancelable subleases and leases of owned property at December 31, 2011:



	Direct Financing Leases		Operating Leases
	(In millions)
2012	$	18.1	$	95.3
2013	18.2		95.7
2014	18.2		95.8
2015	18.0		96.2
2016	17.8		95.7
Thereafter	89.7		833.5
Total minimum rents receivable	$	180.0	$	1,312.2

The Company has noncancelable leases, expiring at various dates through 2040, which require payment of contingent rents based upon a percentage of sales of the related restaurant as well as property taxes, insurance and other charges. Subleases to franchisees of properties under such leases are generally for the full term of the lease obligation at rents that include the Company's obligations for property taxes, insurance, contingent rents and other charges. Generally, the noncancelable leases include renewal options. Contingent rent expense for all noncancelable leases for the years ended December 31, 2011, 2010 and 2009 was $2.8 million, $3.4 million and $3.9 million, respectively. Minimum rent expense for all noncancelable operating leases for the years ended December 31, 2011, 2010 and 2009 was $81.8 million, $87.2 million and $86.6 million, respectively.