Lease Commitments

12 Months Ended

Dec. 27, 2014

Lease Commitments [Abstract]

Lease Commitments

Note 5  Lease Commitments 

At December 27, 2014, 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)		2014		2013		2012
Minimum annual rentals	$	35,183	$	32,817	$	30,141
Contingent rentals		409		386		134
Lease or sublease income		(6,881)		(6,452)		(6,352)
	$	28,711	$	26,751	$	23,923

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 27, 2014.

(dollars in thousands)		Leases		Subleases
2015	$	32,826	$	(2,962)
2016		31,619		(2,796)
2017		26,974		(2,261)
2018		24,073		(1,621)
2019		19,185		(855)
Thereafter		65,297		(2,478)
	$	199,974	$	(12,973)

The Company has $455,000 accrued as of December 27, 2014 and had $521,000 accrued as of December 28, 2013, 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.