8. LEASES

As lessee — We lease restaurants and other facilities, which generally have renewal clauses of 5 to 20 years exercisable at our option. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our leases also have rent escalation clauses and require the payment of property taxes, insurance and maintenance costs. We also lease certain restaurant and office equipment, and in 2012, we leased various transportation equipment. Minimum rental obligations are accounted for on a straight-line basis over the term of the initial lease.

The components of rent expense were as follows in each fiscal year (in thousands):



	2014			2013			2012
Minimum rentals	$	213,082		$	210,638		$	206,604
Contingent rentals	1,986			1,840			2,013
Total rent expense	215,068			212,478			208,617
Less rental expense on subleased properties	(139,976		)	(136,970		)	(130,275		)
Net rent expense	$	75,092		$	75,508		$	78,342

The following table presents as of September 28, 2014, future minimum lease payments under capital and operating leases including leases recorded as lease obligations relating to continuing and discontinued operations (in thousands):



Fiscal Year	Capital Leases			Operating Leases
2015	$	1,260		$	229,203
2016	1,198			233,145
2017	1,072			197,226
2018	793			163,644
2019	364			152,644
Thereafter	952			636,570
Total minimum lease payments	5,639			$	1,612,432
Less amount representing interest, 10.20% weighted average interest rate	(1,256		)
Present value of obligations under capital leases	4,383
Less current portion	(870		)
Long-term capital lease obligations	$	3,513

Total future minimum lease payments of $1.0 billion included in the table above are expected to be recovered under our non-cancelable operating subleases.

Assets recorded under capital leases are included in property and equipment, and consisted of the following at each year-end (in thousands):



	2014			2013
Buildings	$	19,105		$	19,105
Less accumulated amortization	(15,667		)	(14,808		)
	$	3,438		$	4,297

Amortization of assets under capital leases is included in depreciation and amortization expense.

As lessor — We lease or sublease restaurants to certain franchisees and others under agreements that generally provide for the payment of percentage rentals in excess of stipulated minimum rentals, usually for a period of 20 years. Most of our leases have rent escalation clauses and renewal clauses of 5 to 20 years. The following details rents received under these agreements in each fiscal year (in thousands):



	2014		2013		2012
Total rental income (1)	$	222,443	$	213,009	$	200,760
Contingent rentals	$	19,551	$	16,966	$	16,341

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(1)	Includes contingent rentals.

The minimum rents receivable expected to be received under these non-cancelable operating leases and subleases, excluding contingent rentals, as of September 28, 2014 are as follows (in thousands):



Fiscal Year
2015	$	206,015
2016	221,923
2017	202,867
2018	183,145
2019	197,287
Thereafter	1,550,311
Total minimum future rentals	$	2,561,548

Assets held for lease and included in property and equipment consisted of the following at each year-end (in thousands):



	2014			2013
Land	$	72,143		$	79,015
Buildings	689,056			684,288
Equipment	4,492			3,887
	765,691			767,190
Less accumulated depreciation	(434,526		)	(400,211		)
	$	331,165		$	366,979