Lease Commitments

12 Months Ended

Dec. 29, 2013

Leases [Abstract]

Lease Commitments

Lease Commitments

The Company leases certain facilities and equipment under operating and capital leases having terms expiring at various dates through 2023.

Future minimum lease payments under capital and operating leases as of December 29, 2013, which does not include $7.1 million in sublease income on the Company's operating leases, are as follows (in millions):

Year	Capital Leases		Net Operating Leases
2014	$	0.4	$	15.9
2015	0.1		13.0
2016	—		10.9
2017	—		9.6
2018	—		8.8
Thereafter	—		12.7
Total future minimum lease payments	0.5		$	70.9
Less amount representing interest	0.1
Present value of capital lease obligations	0.4
Less current portion	0.3
Long-term capital lease obligations	$	0.1

The following is an analysis of the leased property under capital leases by major class (in millions):

	December 30, 2012		December 29, 2013
Classes of Property
Facilities	$	1.0	$	1.0
Vehicles	0.5		0.5
Office equipment	0.5		0.4
Total	2		1.9
Less: Accumulated amortization	1.5		1.7
	$	0.5	$	0.2

Amortization expense related to capital leases was $0.1 million, $0.1 million and $0.2 million for the years ended December 25, 2011, December 30, 2012 and December 29, 2013, respectively.

Gross rent expense under operating leases for the years ended December 25, 2011, December 30, 2012, and December 29, 2013 was $12.8 million, $21.1 million, and $16.7 million, respectively. Total sublease income for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, totaling $1.3 million, $2.7 million, and $2.3 million, respectively, has been netted against rent expense.

Based on management's assessment of assumptions considering existing market conditions, sublease rental rates and recoverability of operating lease expenses for the Company's vacant properties and due to the Company's actions to consolidate facilities, the Company periodically reevaluates its accrual for excess facilities. In 2011, as a result of the Integral acquisition, the Company acquired 131,450 rentable square feet of property located in Maryland with a lease term through April 2020. Prior to the acquisition, Integral had vacated the majority of this space and subleased approximately 83,000 square feet for an initial term which commenced on October 1, 2010 and ends on October 31, 2015. The Company recorded a liability at fair value of approximately $19.0 million at the merger date related to this excess facility.

The Company's accrual for excess facilities was $18.5 million, $18.7 million, and $12.4 million as of December 25, 2011, December 30, 2012 and December 29, 2013, respectively. The Company estimates that the remaining accrual will be paid through 2020.

The accrual for excess facilities is as follows (in millions):

	Excess Facilities
Balance as of December 25, 2011	$	18.5
Fair value of liability assumed in acquisition	1.8
Cash payments	(1.6		)
Balance as of December 30, 2012	18.7
Adjustments of excess facility accruals	(4.7		)
Cash payments	(1.6		)
Balance as of December 29, 2013	$	12.4

The lease on certain office facilities includes scheduled base rent increases over the term of the lease. The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease. In addition to the base rent payment, the Company pays a monthly allocation of the building's operating expenses. The Company has recorded deferred rent, included in accrued expenses and other long-term liabilities in the Consolidated Balance Sheets, of $1.0 million, $1.3 million, and $3.2 million at December 25, 2011, December 30, 2012 and December 29, 2013, respectively, to reflect the excess of rent expense over cash payments since inception of the respective leases. The adjustment to the accrual in 2013 was primarily due to a change in the necessary estimated excess facility accrual of office space at our Colombia, Maryland administrative facilities.