Lease Commitments

12 Months Ended

Dec. 28, 2013

Lease Commitments [Abstract]

Lease Commitments

Note 5  Lease Commitments

At December 28, 2013, the Company leased approximately 50% of its open store facilities under operating leases that expire at various dates through 2029.  These leases generally provide for fixed annual rentals; however, several provide for minimum annual rentals plus contingent rentals as a percentage of annual sales and a number of leases require the Company to pay for all or a portion of insurance, real estate taxes, water and sewer rentals, and repairs, the cost of which is charged to the related expense category rather than being accounted for as rent expense.  Most of the leases contain multiple renewal options, under which the Company may extend the lease terms from 5 to 20 years.  Rents on operating leases, including agreements with step rents, are charged to expense on a straight-line basis over the minimum lease term. 

Rent expense and income on all leases consisted of:

(dollars in thousands)		2013		2012		2011
Minimum annual rentals	$	32,817	$	30,141	$	30,970
Contingent rentals		386		134		512
Lease or sublease income		(6,452)		(6,352)		(6,704)
	$	26,751	$	23,923	$	24,778

Note 5  Lease Commitments (continued)

The following is a schedule by years of future minimum rental payments required under operating leases and total minimum sublease and lease rental income to be received that have initial or remaining non-cancelable lease terms in excess of one year as of December 28, 2013.

(dollars in thousands)		Leases		Subleases
2014	$	33,651	$	(3,258)
2015		32,252		(3,139)
2016		28,505		(2,487)
2017		24,330		(1,807)
2018		22,115		(1,208)
Thereafter		82,207		(2,378)
	$	223,060	$	(14,277)

The Company has $521,000 accrued as of December 28, 2013 and had $99,000 accrued as of December 29, 2012, for future minimum rental payments due on previously closed stores, reduced by the estimated sublease income to be received.  The future minimum rental payments required under operating leases and estimated sublease income for these locations are included in the above schedule.