Commitments And Contingencies

6 Months Ended

Jul. 03, 2011

Commitments And Contingencies

Commitments And Contingencies

8. Commitments and Contingencies

Leases

The Company leases a portion of its convenience store properties under non-cancellable operating leases whose initial terms are typically 10 to 20 years, along with options that permit renewals for additional periods. Minimum rent is expensed on a straight-line basis over the term of the lease. In addition to minimum rental payments, certain leases require additional payments based on sales or motor fuel volume. The Company is typically responsible for payment of real estate taxes, maintenance expenses and insurance.

The components of net rent expense are as follows:

	Three Months Ended						Six Months Ended
	July 4, 2010			July 3, 2011			July 4, 2010			July 3, 2011
	(in thousands)
Cash rent:
Store base rent	$	10,479		$	11,193		$	20,605		$	22,356
Equipment rent		347			518			555			1,025
Contingent rent		69			75			133			142
Total cash rent	$	10,895		$	11,786		$	21,293		$	23,523
Non-cash rent:
Straight-line rent		186			136			374			263
Amortization of deferred gain		(539	)		(549	)		(1,074	)		(1,097	)
Net rent expense	$	10,542		$	11,373		$	20,593		$	22,689

Letters of Credit

We were contingently liable for $18.8 million related to irrevocable letters of credit required by various insurers and suppliers at July 3, 2011.