LEASES:

Capital Leases

Minimum future capital lease payments are as follows (in thousands):



Fiscal Years
2020	$	2,571
2021	2,598
2022	2,598
2023	2,548
2024	2,251
Thereafter	32,832
Total minimum future capital lease payments	45,398
Less: amounts representing interest	(16,031		)
Plus: residual values	327
Present value of capital lease obligations	29,694
Less: current portion of capital lease obligations	(1,133		)
Capital lease obligations, net of current portion	$	28,561

Operating Leases

The Company leases certain areas at Mohegan Sun and Mohegan Sun Pocono to third-party food and beverage and retail outlets, as well as the rights to access and utilize Mohegan Sun’s rooftop for the installation and operation of antenna towers.

Minimum future rental income that the Company expects to earn under non-cancelable leases is as follows (in thousands):



Fiscal Years
2020	$	4,808
2021	4,038
2022	2,485
2023	2,092
2024	2,011
Thereafter	5,734
Total	$	21,168

The Company is required to make payments under various operating leases for buildings, equipment and land relating to Mohegan Sun, Mohegan Sun Pocono and the MGE Niagara Resorts. The Company incurred rental expense relating to these leases totaling $19.3 million, $10.7 million and $9.5 million for the fiscal years ended September 30, 2019, 2018 and 2017, respectively. The Company also subleases the Earth Hotel Tower, which opened in November 2016, from a subsidiary of the Mohegan Tribe and previously subleased a related connector from the Mohegan Tribe (refer to Note 11). The Company incurred rental expense relating to these subleases totaling $8.6 million, $8.8 million and $8.8 million for the fiscal years ended September 30, 2019, 2018 and 2017, respectively.

Minimum future rental payments that the Company expects to incur under non-cancelable leases and subleases are as follows (in thousands):



Fiscal Years	Minimum Future Rental Payments		Minimum Future Sublease Income			Total
2020	$	32,504	$	(1,709	)	$	30,795
2021	30,376		(1,428		)	28,948
2022	30,651		(1,114		)	29,537
2023	30,473		(987		)	29,486
2024	30,602		(1,025		)	29,577
Thereafter	715,910		(843		)	715,067
Total	$	870,516	$	(7,106	)	$	863,410

In March 2019, the Company received the necessary approvals for the initial phase of Project Inspire and, as a result, it was granted control of the related portion of the overall parcel of land. Accordingly, for accounting purposes, the lease term for this portion of land commenced on such date and the Company began recognizing rental expense and a corresponding long-term lease liability. Rental expense is being recognized on a straight-line basis over the lease term. Rental expense totaled $1.8 million for the fiscal year ended September 30, 2019 and was recorded within pre-opening costs and expenses.