Leases (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Assets Lease, Property and Equipment, Net

Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions):



	As of December 31,
	2017			2016
Land	$	930.7		$	893.9
Buildings and improvements	1,215.5			1,112.9
Restaurant equipment	17.5			14.7
	2,163.7			2,021.5
Accumulated depreciation and amortization	(407.4		)	(312.5		)
Property and equipment leased, net	$	1,756.3		$	1,709.0

Summary of Net Investment, Direct Financing Leases

Our net investment in direct financing leases is as follows (in millions):



	As of December 31,
	2017			2016
Future rents to be received:
Future minimum lease receipts	$	77.5		$	96.3
Contingent rents (a)	39.6			51.2
Estimated unguaranteed residual value	17.1			18.9
Unearned income	(45.4		)	(56.5		)
Allowance on direct financing leases	(0.2		)	(0.2		)
	88.6			109.7
Current portion included within accounts receivables	(17.3		)	(17.8		)
Net investment in property leased to franchisees	$	71.3		$	91.9


(a)	Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting.

Summary of Property Revenue

Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions):



	2017		2016		2015
Rental income:
Minimum	$	466.0	$	452.8	$	453.9
Contingent	283.8		282.5		281.7
Amortization of favorable and unfavorable income lease contracts, net	8.3		8.5		11.0
Total rental income	758.1		743.8		746.6
Earned income on direct financing leases	7.0		8.9		13.6
Total property revenues	$	765.1	$	752.7	$	760.2

Summary of Rent Expense Associated with Lease Commitments

Rent expense associated with these lease commitments is as follows (in millions):



	2017		2016		2015
Rental expense:
Minimum	$	198.1	$	193.5	$	199.5
Contingent	71.1		70.6		73.1
Amortization of favorable and unfavorable payable lease contracts, net	9.7		9.2		10.1
Total rental expense (a)	$	278.9	$	273.3	$	282.7


(a)	Amounts include rental expense related to properties subleased to franchisees of $262.8 million for 2017, $253.9 million for 2016, and $267.0 million for 2015.

Summary of Future Minimum Lease Receipts and Commitments

As of December 31, 2017, future minimum lease receipts and commitments are as follows (in millions):



	Lease Receipts				Lease Commitments (a)
	Direct Financing Leases		Operating Leases		Capital Leases			Operating Leases
2018	$	18.1	$	360.3	$	39.7		$	182.9
2019	14.3		323.7		36.4			167.6
2020	9.6		288.6		34.3			154.7
2021	6.8		256.3		32.9			138.8
2022	5.4		226.2		32.1			125.5
Thereafter	23.3		1,327.7		232.8			837.5
Total minimum receipts / payments	$	77.5	$	2,782.8	408.2			$	1,607.0
Less amount representing interest					(143.0		)
Present value of minimum capital lease payments					265.2
Current portion of capital lease obligation					(21.4		)
Long-term portion of capital lease obligation					$	243.8


(a)	Minimum lease payments have not been reduced by minimum sublease rentals of $1,833.5 million due in the future under non-cancelable subleases.