Leases

The Company accounts for a majority of its leases as operating leases. The Company, at its option, can renew a substantial portion of the leases at defined or then fair rental rates for various periods. Certain leases for Company theatres provide for contingent rentals based on the revenue results of the underlying theatre and require the payment of taxes, insurance and other costs applicable to the property. Also, certain leases contain escalating minimum rental provisions that have been accounted for on a straight-line basis over the initial term of the leases.

Minimum rentals payable under all non-cancelable operating leases with terms in excess of 1 year as of December 26, 2013, are summarized for the following fiscal years (in millions):



2014	$	34.7
2015	33.1
2016	19.4
2017	10.7
2018	7.3
Thereafter	8.0
Total	$	113.2

Rent expense, including sale and leaseback rentals of $15.1 million, $15.1 million and $15.1 million, for the years ended December 26, 2013, December 27, 2012 and December 29, 2011, under such operating leases amounted to $34.9 million, $35.6 million and $35.2 million for the years ended December 26, 2013, December 27, 2012 and December 29, 2011, respectively. Contingent rent expense was $1.1 million, $1.0 million and $0.9 million for the years ended December 26, 2013, December 27, 2012 and December 29, 2011, respectively.

Sale-Leaseback Transactions

The Company has historically entered into sale and leaseback transactions whereby owned properties were sold and leased back under operating leases. The minimum rentals for these operating leases are included in the table above.

In December 1995, UATC entered into a sale and leaseback transaction whereby 31 owned properties were sold to and leased back from an unaffiliated third party. In conjunction with the transaction, the buyer of the properties issued publicly traded pass-through certificates. In connection with this sale and leaseback transaction, UATC entered into a Participation Agreement that requires UATC to comply with various covenants, including limitations on indebtedness, restricted payments, transactions with affiliates, guarantees, issuance of preferred stock of subsidiaries and subsidiary distributions, transfer of assets and payment of dividends. As of December 26, 2013, 11 theatres were subject to the sale leaseback transaction and approximately $14.7 million in principal amount of pass-through certificates were outstanding.