Lease Commitments

12 Months Ended

Dec. 29, 2018

Note 5 Lease Commitments

At December 29, 2018, the Company leased approximately 53% 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)		2018		2017		2016
Minimum annual rentals	$	47,253	$	46,804	$	38,632
Contingent rentals		419		432		431
Lease or sublease income		(7,757)		(7,612)		(7,212)
	$	39,915	$	39,624	$	31,851

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 29, 2018.



(dollars in thousands)		Leases		Subleases
2019	$	43,713	$	(3,692)
2020		40,730		(3,524)
2021		34,556		(3,025)
2022		28,550		(2,453)
2023		24,323		(2,013)
Thereafter		70,412		(7,845)
	$	242,284	$	(22,552)