Commitments and License Rights

12 Months Ended

May. 28, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments License Rights and Contingencies

9. Commitments and License Rights

Lease Commitments – The Company leases real estate under various noncancellable operating leases with an initial term greater than one year that contain multiple renewal options, exercisable at the Company’s option. The Company recognizes rent expense on a straight-line basis over the expected lease term, including cancelable option periods where failure to exercise such options would result in an economic penalty. Percentage rentals are based on the revenues at the specific rented property. Rent expense charged to operations under these leases was as follows:

	Year Ended
	May 28, 2015		May 29, 2014		May 30, 2013
	(in thousands)
Fixed minimum rentals	$	8,064	$	7,995	$	8,024
Amortization of favorable lease right		334		334		334
Percentage rentals		193		193		60
	$	8,591	$	8,522	$	8,418

Aggregate minimum rental commitments under long-term operating leases, assuming the exercise of certain lease options, are as follows at May 28, 2015:

Fiscal Year	(in thousands)
2016	$	7,639
2017		7,569
2018		7,732
2019		7,827
2020		7,982
Thereafter		82,072
	$	120,821

Commitments – The Company has commitments for the completion of construction at various properties totaling approximately $10,569,000  at May 28, 2015.

License Rights – The Company has license rights to operate three hotels using the Hilton trademark, one hotel using the InterContinental trademark and two hotels using the Marriott trademark. Under the terms of the licenses, the Company is obligated to pay fees based on defined gross sales.