Leases

12 Months Ended

Dec. 31, 2018

At December 31, 2018, we operated 856 restaurants, leasing the underlying land and/or building in 517 of those restaurants with the vast majority of our commitments expiring within 20 years from the inception of the lease. In addition, the Company leases or subleases 1,020 units to franchisees, principally in the U.S., United Kingdom, Australia, Germany and France.

We also lease office space for headquarters and support functions, as well as certain office and restaurant equipment. We do not consider any of these individual leases material to our operations. Most leases require us to pay related executory costs, which include property taxes, maintenance and insurance.

Future minimum commitments and amounts to be received as lessor or sublessor under non cancellable leases are set forth below:



	Commitments				Lease Receivables
	Capital		Operating		Direct Financing		Operating
2019	$	10	$	103	$	6	$	89
2020	10		89		5		79
2021	9		78		4		74
2022	8		71		4		69
2023	8		61		3		67
Thereafter	58		384		30		638
	$	103	$	786	$	52	$	1,016

At December 31, 2018 and December 31, 2017, the present value of minimum payments under capital leases was $71 million and $105 million, respectively. At December 31, 2018, unearned income associated with direct financing lease receivables was $19 million.

Upon adoption of the new lease accounting standards at the beginning of the first quarter of 2019 we currently expect to recognize additional lease liabilities of approximately $750 million, with corresponding right-of-use assets of approximately $675 million based on the present value of the remaining operating lease payments that include scheduled rent increases. These remaining lease payments include both future minimum commitments under non cancellable leases as set forth above as well as approximately $50 million of nominal operating lease payments pertaining to renewal options that, at lease inception, we determined were reasonably assured of being exercised.

The details of rental expense and income are set forth below:



	2018		2017		2016
Rental expense
Minimum	$	142	$	193	$	208
Contingent	9		21		26
	$	151	$	214	$	234
Rental income	$	131	$	86	$	73