Lease Commitments

12 Months Ended

Dec. 27, 2015

The Company leases certain facilities and equipment under operating and capital leases having terms expiring at various dates through 2025.

Future minimum lease payments under capital and operating leases as of December 27, 2015, which does not include $14.2 million in sublease income on the Company’s operating leases, are as follows (in millions):



Year	Operating Leases
2016	$	19.5
2017	16.8
2018	14.5
2019	12.1
2020	7.5
Thereafter	3.1
Total future minimum lease payments	$	73.5

Amortization expense related to capital leases was $0.2 million, $0.2 million and $0.0 million for the years ended December 29, 2013, December 28, 2014 and December 27, 2015, respectively.

Gross rent expense under operating leases for the years ended December 29, 2013, December 28, 2014, and December 27, 2015 was $20.2 million, $24.6 million, and $23.1 million, respectively. Total sublease income for the years ended December 29, 2013, December 28, 2014, and December 27, 2015, totaling $2.3 million, $3.3 million, and $3.3 million, respectively, has been netted against rent expense.

The Company’s accrual for excess facilities was $12.4 million, $11.3 million, and $5.5 million as of December 29, 2013, December 28, 2014 and December 27, 2015, 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 29, 2013	$	12.4
Adjustment of excess facility accrual	0.2
Cash payments	(1.3		)
Balance as of December 28, 2014	11.3
Adjustments of excess facility accruals	(4.3		)
Cash payments	(1.5		)
Balance as of December 27, 2015	$	5.5

The adjustment of $0.2 million for 2014 was primarily due to an estimated excess facility accrual of office space at our Sacramento, California administrative facilities. The adjustment in 2015 reflects the impact of a new sublease arrangement that the Company entered into for our Columbia, Maryland facility.

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 $3.1 million, $5.2 million, and $4.6 million at December 29, 2013, December 28, 2014 and December 27, 2015, respectively, to reflect the excess of rent expense over cash payments since inception of the respective leases.