8. Leases

The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities.

In the years ended December 30, 2012, January 1, 2012 and January 2, 2011, the Company sold one, two and three restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $1,177, $2,818 and $3,413, respectively. These leases have been classified as operating leases and generally contain a twenty-year initial term plus renewal options.

Deferred gains from sale-leaseback transactions of Burger King restaurant properties of $705, $133 and $493 were recognized during the years ended December 30, 2012, January 1, 2012 and January 2, 2011, respectively, and are being amortized over the term of the related leases. The amortization of deferred gains on sale-leaseback transactions was $1,776, $1,987 and $1,825 for the years ended December 30, 2012, January 1, 2012 and January 2, 2011, respectively.

Minimum rent commitments under capital and non-cancelable operating leases at December 30, 2012 were as follows:



Fiscal year ending:	Capital			Operating
December 30, 2012	$	1,714		$	45,056
December 29, 2013	1,715			42,899
December 28, 2014	1,715			40,610
January 3, 2016	1,715			39,324
January 1, 2017	1,715			36,699
Thereafter	4,664			323,046
Total minimum lease payments	13,238			$	527,634
Less amount representing interest	(2,943		)
Total obligations under capital leases	10,295
Less current portion	(1,062		)
Long-term obligations under capital leases	$	9,233

Total rent expense on operating leases, including percentage rent on both operating and capital leases, was as follows:



	Year ended
	December 30, 2012		January 1, 2012		January 2, 2011
Minimum rent on real property	$	34,758	$	20,765	$	21,263
Additional rent based on percentage of sales	3,125		1,900		1,906
Restaurant rent expense	37,883		22,665		23,169
Administrative and equipment rent	174		114		169
	$	38,057	$	22,779	$	23,338