LEASES

As lessee — We lease restaurants and other facilities, which generally have renewal clauses of 5 to 20 years exercisable at our option. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our leases also have rent escalation clauses and require the payment of property taxes, insurance and maintenance costs. We also lease certain restaurant, office and warehouse equipment, as well as various transportation equipment. Minimum rental obligations are accounted for on a straight-line basis over the term of the initial lease.

The components of rent expense were as follows in each fiscal year (in thousands):



	2012			2011			2010
Minimum rentals	$	225,414		$	223,034		$	222,600
Contingent rentals	2,013			1,796			1,804
Total rent expense	227,427			224,830			224,404
Less rental expense on subleased properties	(130,275		)	(109,300		)	(83,340		)
Net rent expense	$	97,152		$	115,530		$	141,064

The following table presents as of September 30, 2012, future minimum lease payments under capital and operating leases as follows (in thousands):



Fiscal Year	Capital Leases			Operating Leases
2013	$	1,532		$	227,768
2014	1,377			219,721
2015	1,260			203,849
2016	1,198			201,951
2017	1,071			167,969
Thereafter	2,104			743,487
Total minimum lease payments	8,542			$	1,764,745
Less amount representing interest, 10.00% weighted average interest rate	(2,314		)
Present value of obligations under capital leases	6,228
Less current portion	(952		)
Long-term capital lease obligations	$	5,276

Total future minimum lease payments of $1.1 billion included in the table above are expected to be recovered under our non-cancellable operating subleases.

Assets recorded under capital leases are included in property and equipment, and consisted of the following at each year-end (in thousands):



	2012			2011
Buildings	$	19,431		$	19,514
Less accumulated amortization	(14,499		)	(13,517		)
	$	4,932		$	5,997

Amortization of assets under capital leases is included in depreciation and amortization expense.

As lessor — We lease or sublease restaurants to certain franchisees and others under agreements that generally provide for the payment of percentage rentals in excess of stipulated minimum rentals, usually for a period of 20 years. Most of our leases have rent escalation clauses and renewal clauses of 5 to 20 years. The following details rents received under these agreements in each fiscal year (in thousands):



	2012		2011		2010
Total rental income (1)	$	200,760	$	166,937	$	133,787
Contingent rentals	$	16,341	$	10,364	$	7,721

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(1)	Includes contingent rentals.

The minimum rents receivable expected to be received under these non-cancelable operating leases and subleases, excluding contingent rentals, as of September 30, 2012 are as follows (in thousands):



Fiscal Year
2013	$	189,026
2014	187,955
2015	186,332
2016	201,138
2017	184,081
Thereafter	1,715,598
Total minimum future rentals	$	2,664,130

Assets held for lease and included in property and equipment consisted of the following at each year-end (in thousands):



	2012			2011
Land	$	73,831		$	63,839
Buildings	643,113			583,168
Equipment	3,455			3,244
	720,399			650,251
Less accumulated depreciation	(353,157		)	(298,801		)
	$	367,242		$	351,450