Jack In The Box 2010 Annual Report Download - page 57

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Table of Contents


The components of rent expense were as follows in each fiscal year :
  
Minimum rentals $ 222,600 $ 208,091 $ 199,903
Contingent rentals 1,804 2,954 3,444
Total rent expense 224,404 211,045 203,347
Less sublease rentals (83,340) (61,529) (50,004)
Net rent expense $ 141,064 $ 149,516 $ 153,343
Future minimum lease payments under capital and operating leases are as follows :
 
  
2011 $ 2,101 $ 219,414
2012 1,841 209,939
2013 1,583 195,523
2014 1,426 185,697
2015 1,309 171,073
Thereafter 4,564 919,376
Total minimum lease payments 12,824 $ 1,901,022
Less amount representing interest, 10.14% weighted average interest rate (3,913)
Present value of obligations under capital leases 8,911
Less current portion (1,281)
Long-term capital lease obligations $ 7,630
Total future minimum lease payments have not been reduced by minimum sublease rents of $1.2 billion expected to be recovered
under our operating subleases.
Assets recorded under capital leases are included in property and equipment and consisted of the following at each year-end 
:
 
Buildings $ 22,733 $ 22,733
Equipment 16 499
22,749 23,232
Less accumulated amortization (15,340) (15,048)
$ 7,409 $ 8,184
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. Total rental income was $133.8 million, $105.5 million and $88.6 million,
including contingent rentals of $7.7 million, $13.0 million and $13.8 million, in 2010, 2009 and 2008, respectively.
F-17