Leases (Tables)

3 Months Ended

Apr. 01, 2018

Rental expense for operating leases consists of the following components:



	Three Months Ended
	April 1, 2018		April 2, 2017
Rental expense:
Minimum rentals	$	24,854	$	19,918
Contingent rentals	4,071		4,288
Total rental expense (a) (b)	$	28,925	$	24,206

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(a)	Amounts include rental expense related to (1) leases for Company-operated restaurants recorded to “Cost of sales,” (2) leased properties that are subsequently leased to franchisees recorded to “Franchise rental expense” and (3) leases for corporate offices and equipment recorded to “General and administrative.”


(b)	Amounts exclude sublease income of $34,306 and $26,563 recognized during the three months ended April 1, 2018 and April 2, 2017, respectively

Schedule of Rent Income

Rental income for operating leases and subleases consists of the following components:



	Three Months Ended
	April 1, 2018		April 2, 2017
Rental income:
Minimum rentals	$	46,327	$	38,605
Contingent rentals	3,780		4,312
Total rental income	$	50,107	$	42,917

Schedule of Future Minimum Rental Payments for Operating Leases

The following table illustrates the Company’s future minimum rental payments and rental receipts for non-cancelable leases and subleases, including rental receipts for direct financing leases as of April 1, 2018. Rental receipts below are presented separately for owned properties and for leased properties based on the classification of the underlying lease.



	Rental Payments					Rental Receipts
Fiscal Year	Capital Leases			Operating Leases		Capital Leases		Operating Leases		Owned Properties
2018 (a)	$	35,711		$	72,222	$	48,894	$	56,676	$	40,282
2019	45,624			94,457		65,684		75,847		54,651
2020	46,552			93,419		66,780		75,515		55,260
2021	48,164			92,888		68,595		75,357		56,860
2022	49,272			92,576		69,793		75,721		58,433
Thereafter	760,722			1,119,861		1,057,539		916,592		946,056
Total minimum payments	$	986,045		$	1,565,423	$	1,377,285	$	1,275,708	$	1,211,542
Less interest	(518,714		)
Present value of minimum capital lease payments (b)	$	467,331

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(a)	Represents future minimum rental payments and rental receipts for non-cancelable leases and subleases for the remainder of the 2018 fiscal year.


(b)	The present value of minimum capital lease payments of $7,588 and $459,743 are included in “Current portion of long-term debt” and “Long-term debt,” respectively.

Schedule of Property Subject to or Available for Operating Lease

Properties owned by the Company and leased to franchisees and other third parties under operating leases include:



	April 1, 2018			December 31, 2017
Land	$	271,384		$	272,411
Buildings and improvements	312,296			313,108
Restaurant equipment	2,443			2,444
	586,123			587,963
Accumulated depreciation and amortization	(131,690		)	(128,003		)
	$	454,433		$	459,960

Schedule of Capital Leased Assets

Our net investment in direct financing leases is as follows:



	April 1, 2018			December 31, 2017
Future minimum rental receipts	$	658,218		$	662,889
Unearned interest income	(427,984		)	(433,175		)
Net investment in direct financing leases	230,234			229,714
Net current investment in direct financing leases (a)	(634		)	(625		)
Net non-current investment in direct financing leases	$	229,600		$	229,089

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(a)	Included in “Accounts and notes receivable, net.”