7. Leases

Leasing Arrangements as a Lessor

The Company’s leasing activities consist principally of leasing certain land and buildings as well as subleasing certain buildings to franchise operators. The land and building portions of all leases are classified as operating leases with lease terms expiring through September 2030. These leases include provisions for contingent rentals that may be received on the basis of a percentage of sales in excess of stipulated amounts. Income is not recognized on contingent rentals until sales exceed the stipulated amounts. Some leases contain escalation clauses over the lives of the leases. For property owned by third parties, the lease term runs concurrently with the term of the third-party lease arrangement. Most of the leases contain renewal options at the end of the initial term for periods of five years.

Future minimum rental payments receivable as of August 31, 2015, are as follows:



	Operating
Years ended August 31:
2016	$	5,905
2017		6,245
2018		6,667
2019		7,084
2020		7,440
Thereafter		36,481
	$	69,822

Leasing Arrangements as a Lessee

Certain Company Drive-Ins lease land and buildings from third parties. These leases, with lease terms expiring through August 2030, include provisions for contingent rents that may be paid on the basis of a percentage of sales in excess of stipulated amounts. For the majority of leases, the land portions are classified as operating leases, and the building portions are classified as capital leases.

Future minimum rental payments required under operating leases and maturities under capital leases that have initial or remaining noncancelable lease terms in excess of one year as of August 31, 2015, are as follows:



	Operating		Capital
Years ended August 31:
2016	$	11,374	$	5,254
2017		10,992		5,004
2018		11,058		4,401
2019		10,767		3,517
2020		10,207		3,177
Thereafter		68,998		9,883
Total minimum lease payments(1)	$	123,396		31,236
Less amount representing interest averaging 6.3%				(6,796)
Present value of net minimum lease payments				24,440
Less amount due within one year				(3,677)
Amount due after one year			$	20,763
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(1) Minimum payments have not been reduced by future minimum rentals receivable under noncancelable operating and capital subleases of $9.5 million and $1.4 million, respectively. They also do not include contingent rentals which may be due under certain leases. Contingent rentals for capital leases amounted to $1.0 million in fiscal year 2015 and to $0.8 million in fiscal years 2014 and 2013.

Total rent expense for all operating leases consists of the following for the years ended August 31:



	2015		2014		2013
Minimum rentals	$	12,659	$	12,449	$	13,154
Contingent rentals		174		161		93
Total rent expense		12,833		12,610		13,247
Less sublease rentals		(2,235)		(1,905)		(1,747)
Net rent expense	$	10,598	$	10,705	$	11,500