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 January 3, 2016, December 28, 2014 and December 29, 2013, the Company sold seven, fifteen and two restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $9,148, $19,565 and $3,144, respectively. These leases have been classified as operating leases and contain a twenty-year initial term plus renewal options.

Deferred gains from sale-leaseback transactions of restaurant properties of $16 and $373 were recognized during the years ended January 3, 2016 and December 28, 2014, respectively, and are being amortized over the term of the related leases. There were no deferred gains recognized during the year ended December 29, 2013. The amortization of deferred gains from sale-leaseback transactions was $2,535, $1,793 and $1,799 for the years ended January 3, 2016, December 28, 2014 and December 29, 2013, respectively.

Minimum rent commitments under capital and non-cancelable operating leases at January 3, 2016 were as follows :



Fiscal year ending:	Capital			Operating
January 1, 2017	$	1,943		$	57,305
December 31, 2017	1,943			55,209
December 30, 2018	1,949			53,572
December 29, 2019	1,950			51,998
January 3, 2021	1,278			49,828
Thereafter	481			433,891
Total minimum lease payments	9,544			$	701,803
Less amount representing interest	(1,538		)
Total obligations under capital leases	8,006
Less current portion	(1,435		)
Long-term obligations under capital leases	$	6,571

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



	Year ended
	January 3, 2016		December 28, 2014		December 29, 2013
Minimum rent on real property	$	53,085	$	45,371	$	43,650
Contingent rent on real property	5,011		3,494		3,548
Restaurant rent expense	58,096		48,865		47,198
Administrative and equipment rent	276		264		225
	$	58,372	$	49,129	$	47,423