8. 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 and office equipment. Minimum rental obligations are accounted for on a straight-line basis over the term of the initial lease, plus lease option terms for certain locations.

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



	2015			2014			2013
Minimum rentals	$	212,722		$	213,082		$	210,638
Contingent rentals	2,549			1,986			1,840
Total rent expense	215,271			215,068			212,478
Less rental expense on subleased properties	(141,946		)	(139,976		)	(136,970		)
Net rent expense	$	73,325		$	75,092		$	75,508

The following table presents as of September 27, 2015, future minimum lease payments under capital and operating leases, including leases recorded as lease obligations relating to continuing and discontinued operations (in thousands):



Fiscal Year	Capital Leases			Operating Leases
2016	$	4,040		$	246,636
2017	3,355			210,994
2018	2,518			177,768
2019	2,647			168,564
2020	2,522			141,470
Thereafter	7,852			552,858
Total minimum lease payments	22,934			$	1,498,290
Less amount representing interest, 3.9% weighted average interest rate	(2,678		)
Present value of obligations under capital leases	20,256
Less current portion	(3,240		)
Long-term capital lease obligations	$	17,016

Total future minimum lease payments of approximately $1.0 billion included in the table above are expected to be recovered under our non-cancelable operating subleases.

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



	2015			2014
Buildings	$	10,716		$	19,105
Equipment	16,770			—
Less accumulated amortization	(8,453		)	(15,667		)
	$	19,033		$	3,438

Amortization of assets under capital leases is included in depreciation and amortization expense on the consolidated statements of earnings.

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 table summarizes rents received under these agreements in each fiscal year (in thousands):



	2015		2014		2013
Total rental income (1)	$	232,264	$	222,443	$	213,009
Contingent rentals	$	28,348	$	19,551	$	16,966

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(1)	Includes contingent rentals.

The minimum rents receivable expected to be received under these non-cancelable operating leases and subleases, including leases recorded as lease obligations relating to continuing and discontinuing operations, and excluding contingent rentals, as of September 27, 2015 are as follows (in thousands):



Fiscal Year
2016	$	224,400
2017	204,802
2018	184,853
2019	199,905
2020	196,635
Thereafter	1,387,889
Total minimum future rent receivable	$	2,398,484

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



	2015			2014
Land	$	72,248		$	72,143
Buildings	678,044			689,056
Equipment	4,374			4,492
	754,666			765,691
Less accumulated depreciation	(453,056		)	(434,526		)
	$	301,610		$	331,165