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.

During the years ended December 31, 2017, January 1, 2017 and January 3, 2016, the Company sold 3, 38 and 7 restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $4,257, $53,599 and $9,148, 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 restaurant properties of $716, $1,480 and $16 were recognized during the years ended December 31, 2017, January 1, 2017, and January 3, 2016, respectively, and are being amortized over the term of the related leases. The amortization of deferred gains from sale-leaseback transactions was $1,626, $1,788 and $2,535 for the years ended December 31, 2017, January 1, 2017 and January 3, 2016, respectively.

Minimum rent commitments under capital and non-cancelable operating leases at December 31, 2017 were as follows :



Fiscal year ending:	Capital			Operating
December 30, 2018	$	2,166		$	68,336
December 29, 2019	2,159			67,207
January 3, 2021	1,433			65,709
January 2, 2022	329			64,958
January 1, 2023	177			64,559
Thereafter	183			600,901
Total minimum lease payments	6,447			$	931,670
Less amount representing interest	(766		)
Total obligations under capital leases	5,681
Less current portion	(1,808		)
Long-term obligations under capital leases	$	3,873

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



	Year ended
	December 31, 2017		January 1, 2017		January 3, 2016
Minimum rent on real property	$	68,329	$	59,076	$	53,085
Contingent rent on real property	7,619		5,738		5,011
Restaurant rent expense	75,948		64,814		58,096
Administrative and equipment rent	328		267		276
	$	76,276	$	65,081	$	58,372