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Lease Commitments
 12 Months Ended
Dec. 31, 2011
Leases Commitments  
Lease Commitments

Note 5 Lease Commitments

At December 31, 2011, the Company leased approximately 50% of its open store facilities under operating leases that expire at various dates through 2028. These leases generally provide for fixed annual rentals; however, several provide for minimum annual rentals plus contingent rentals as a percentage of annual sales and a number of leases require the Company to pay for all or a portion of insurance, real estate taxes, water and sewer rentals, and repairs, the cost of which is charged to the related expense category rather than being accounted for as rent expense. Most of the leases contain multiple renewal options, under which the Company may extend the lease terms from 5 to 20 years. Rents on operating leases, including agreements with step rents, are charged to expense on a straight-line basis over the minimum lease term. The Company does not have any leases that include capital improvement funding or other lease concessions.

 

Rent expense and income on all leases consisted of:

 

(dollars in thousands)   2011     2010     2009  
Minimum annual rentals   $ 30,970     $ 33,285     $ 31,436  
Contingent rentals     512       598       569  
Lease or sublease income     (6,704 )     (6,514 )     (6,482 )
                         
    $ 24,778     $ 27,369     $ 25,523  

 

The following is a schedule by years of future minimum rental payments required under operating leases and total minimum sublease and lease rental income to be received that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2011.

 

(dollars in thousands)   Leases     Subleases  
2012   $ 29,090     $ (3,054 )
2013     29,321       (2,787 )
2014     28,040       (2,424 )
2015     24,365       (2,102 )
2016     21,193       (1,769 )
Thereafter     71,340       (2,175 )
                 
    $ 203,349     $ (14,311 )

 

The Company has $139,200 accrued as of December 31, 2011 and had $531,000 accrued as of December 25, 2010, for future minimum rental payments due on previously closed stores, reduced by the estimated sublease income to be received. The future minimum rental payments required under operating leases and estimated sublease income for these locations are included in the above schedule.