10. Commitments and License Rights

Lease Commitments - The Company leases real estate under various noncancellable operating leases with an initial term greater than one year that contain multiple renewal options, exercisable at the Company’s option. The Company recognizes rent expense on a straight-line basis over the expected lease term, including cancelable option periods where failure to exercise such options would result in an economic penalty. Percentage rentals are based on the revenues at the specific rented property. Rental payments on capital leases are not recorded in rent expense but are recorded as a reduction of the capital lease obligation and interest expense (see Note 6). Rent expense charged to operations under operating leases was as follows:

	Year Ended				31 Weeks Ended		Year Ended
	December 28, 2017		December 29, 2016		December 31, 2015		May 28, 2015
	(in thousands)
Fixed minimum rentals	$	12,027	$	7,707	$	4,693	$	8,064
Amortization of favorable lease right		334		334		194		334
Percentage rentals		708		343		153		193
Amortization of unfavorable leases		(1,200)		–		–		–
		11,869	$	8,384	$	5,040	$	8,591

Aggregate minimum rental commitments under long-term operating leases, assuming the exercise of certain lease options, are as follows at December 28, 2017:

Fiscal Year	(in thousands)
2018	$	11,426
2019		10,659
2020		9,356
2021		8,782
2022		9,016
Thereafter		71,841
	$	121,080

Commitments - The Company has commitments for the completion of construction at various properties totaling approximately $2,505,000 at December 28, 2017.

License Rights - The Company has license rights to operate three hotels using the Hilton trademark, one hotel using the InterContinental trademark and two hotels using the Marriott trademark. Under the terms of the licenses, the Company is obligated to pay fees based on defined gross sales.