Operating Leases - The Company leases restaurant and office facilities and certain equipment under operating leases having initial terms expiring between 2001 and 2016. The restaurant facility leases primarily have renewal clauses of five to 20 years exercisable at the option of the Company. Certain of these leases require the payment of contingent rentals based on a percentage of gross revenues, as defined by the terms of the applicable lease agreement. Total rental expense for the years ended December 31, 2000, 1999 and 1998 was approximately $31,155,000, $27,015,000 and $23,430,000, respectively, and included contingent rent of approximately $3,220,000, $2,902,000 and $2,391,000, respectively.

   Future minimum lease payments on operating leases (including leases for restaurants scheduled to open in 2001), are as follows (in thousands):

 2001                                   $  31,966
 2002                                      30,577
 2003                                      27,916
 2004                                      25,374
 2005                                      22,676
 Thereafter                                60,369
 Total minimum lease payments           $ 198,878

   During 1999, the Company formed joint ventures to develop Outback Steakhouses in Brazil and the Philippines. The Company also entered into agreements to develop and operate Roy's restaurants and Fleming's. Under the terms of the Fleming's agreement, the Company purchased three existing Fleming's for $12,000,000 and committed to the first $13,000,000 of future development costs of which approximately $6,048,000 has been expended as of December 31, 2000.

   The Company is subject to legal proceedings claims and liabilities which arise in the ordinary course of business. In the opinion of management, the amount of the ultimate liability with respect to those actions will not materially affect the Company's financial position or results of operations and cash flows.

   The Company retains direct liability for the first $250,000 of all individual workers compensation claims, except for 1999, and general liability claims and $230,000 of all individual health insurance claims. The Company believes it has adequate reserves for all self insurance claims.