XML 29 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Leases
 12 Months Ended
Dec. 30, 2011
Leases [Abstract]  
Leases

Note 12 – Leases

The Company leases various warehouse and office facilities and certain vehicles and equipment under long-term operating lease agreements that expire at various dates, with related parties and with others. See Note 15 for additional discussion of related party transactions. The Company records operating lease costs, including any determinable rent increases, on a straight-line basis over the lease term. As of December 30, 2011, the Company is obligated under non-cancelable operating lease agreements to make future minimum lease payments as follows:

 

                                         
    Related Party
Real Estate		     Third Party
Real Estate		     Third Party
Vehicles		     Third Party
Other		     Total  

2012

   $ 1,671     $ 1,929     $ 3,393     $ 566     $ 7,559  

2013

     1,729       1,440       2,850       414       6,433  

2014

     1,663       1,341       2,376       185       5,565  

2015

     —         1,359       1,695       —         3,054  

2016

     —         797       1,399       —         2,196  

Thereafter

     —         916       1,914       —         2,830  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total minimum lease payments

   $ 5,063     $ 7,782     $ 13,627     $ 1,165     $ 27,637  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total rent expense for operating leases for the years ended December 30, 2011, December 24, 2010 and December 25, 2009 was $8,634, $7,241 and $7,066, respectively. One of the Company’s subsidiaries, Dairyland USA Corporation, subleases one of its distribution centers from an entity controlled by the Company’s founders, The Chefs’ Warehouse Leasing Co., LLC. The Chefs’ Warehouse Leasing Co., LLC leases the distribution center from the New York City Industrial Development Agency. In connection with this sublease arrangement, Dairyland USA Corporation and two of the Company’s other subsidiaries are required to act as guarantors of The Chefs’ Warehouse Leasing Co., LLC’s mortgage obligation on the distribution center. The mortgage payoff date is December 2029 and the potential obligation under this guarantee totaled $11.2 million at December 30, 2011. The Chefs’ Warehouse Leasing Co., LLC has the ability to opt out of its lease agreement with the New York City Industrial Development Agency by giving 60 days’ notice. This action would cause the concurrent reduction in the term of the sublease with Dairyland USA Corporation to December 2014. On July 1, 2005, the Company entered into a Consent and Conditional Release Agreement releasing the entity guarantors from their respective obligations under the entity guarantees. As of December 30, 2011, the Company was in compliance with the conditions of the release.