9. LEASES

(a) Capital Leases

We lease certain buildings under capital leases. The asset values of $32.6 million and $27.5 million at June 28, 2006 and June 29, 2005, respectively, and the related accumulated amortization of $5.6 million and $10.6 million at June 28, 2006 and June 29, 2005, respectively, are included in property and equipment. Amortization of assets under capital leases is included in depreciation and amortization expense.

(b) Operating Leases

We lease restaurant facilities, office space, and certain equipment under operating leases having terms expiring at various dates through fiscal 2095. The restaurant leases have renewal clauses of 1 to 35 years at our option and, in some cases, have provisions for contingent rent based upon a percentage of sales in excess of specified levels, as defined in the leases. Rent expense for fiscal 2006, 2005, and 2004 was $138.8 million, $119.2 million, and $110.3 million, respectively. Contingent rent included in rent expense for fiscal 2006, 2005, and 2004 was $12.7 million, $11.6 million, and $11.0 million, respectively.

(c) Commitments

As of June 28, 2006, future minimum lease payments on capital and operating leases were as follows (in thousands):

Fiscal Year	Capital Leases				Operating Leases
2007	$	4,771		$	113,137
2008		4,859			108,120
2009		4,948			101,593
2010		5,040			93,378
2011		5,134			84,382
Thereafter		55,062			389,625
Total minimum lease payments		79,814		$	890,235
Imputed interest (average rate of 7%)		(29,981	)
Present value of minimum lease payments		49,833
Less current installments		(1,565	)
	$	48,268

As of June 28, 2006, we had entered into other lease agreements for restaurant facilities currently under construction or yet to be constructed. Classification of these leases as capital or operating has not been determined as construction of the leased properties has not been completed.