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LEASING ACTIVITIES
12 Months Ended
Dec. 31, 2014
Leases [Abstract]  
LEASING ACTIVITIES
LEASING ACTIVITIES
 
The Company leases various equipment under operating and, to a lesser extent, capital lease arrangements. At December 31, 2014, the Company was obligated under cancellable and noncancellable operating and capital leases. Certain lease arrangements contain a buyout/liquidated damages provision. This provision provides that in the event of a major renovation or certain other events, the Company has the right, according to an agreed-upon formula, to buy out any remaining term of the lease by providing the tenant twelve months written notice.

In conjunction with the Purchase Agreement and the subsequent Business Closure discussed in Note 18, the Company has implemented a process to terminate all contracts, including any agreement, contract, lease, sublease, license, sublicense, or concession agreement, and pay any associated termination fees, and in connection therewith, use commercially reasonable efforts to obtain a release from each counterparty thereto. As such, future minimum lease payments under our operating and capital leases for the year ended December 31, 2015 are expected to be $15,670 and $49,879, respectively.

In order to provide the Company access to the Property and time to complete the Business Closure, at the close of the Transaction, ROC and the Buyer entered into a Lease Agreement (the “Lease”), pursuant to which ROC leases the Property from Buyer for the sole purpose of winding down operations. The Lease will be in effect for the duration of the Business Closure and will expire automatically when the Business Closure is complete. In addition, the Company has guaranteed the payment and performance of ROC’s obligations under the Lease by executing a Lease Guaranty concurrently with ROC’s execution of the Lease and the closing of the Transaction.

The current and long term obligations under capital leases are included in “Accrued expenses”. Rental expense for equipment under operating leases for the years ended December 31, 2014, 2013 and 2012 was $363,675, $514,651 and $742,423, respectively. All leases are cancelable within one year.
 
As of December 31, 2014, the Company leases retail space to third parties (primarily retail shops and fast food vendors) under terms of non-cancelable operating leases that expire in various years through 2017, and have options to extend at the tenant’s option. Rental income, which is included in other revenue, for the years ended December 31, 2014, 2013 and 2012 was $1,855,926, $1,934,700 and $2,006,760, respectively.
 
At December 31, 2014, the Company had future minimum annual rental income due under non-cancelable operating leases of $582,388.