Lease Commitments

12 Months Ended

Dec. 30, 2017

Note 5 Lease Commitments

At December 30, 2017, the Company leased approximately 54% of its open store facilities under operating leases that expire at various dates through 2033. 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. Additionally, the Company has operating leases for certain transportation and other equipment.

Rent expense and income on all leases consisted of:



(dollars in thousands)		2017		2016		2015
Minimum annual rentals	$	46,804	$	38,632	$	34,794
Contingent rentals		432		431		452
Lease or sublease income		(7,612)		(7,212)		(7,069)
	$	39,624	$	31,851	$	28,177

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 30, 2017.



(dollars in thousands)		Leases		Subleases
2018	$	43,820	$	(3,278)
2019		40,665		(3,075)
2020		33,100		(2,800)
2021		26,893		(2,397)
2022		21,124		(2,054)
Thereafter		79,892		(8,693)
	$	245,494	$	(22,297)

The Company did not have a liability accrued as of December 31, 2017 and as of December 31, 2016, 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.