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Leases and Rental Expense
 12 Months Ended
Sep. 29, 2012
Leases and Rental Expense [Abstract]  
Leases and Rental Expense

5. Leases and Rental Expense

 

The Company conducts part of its retail operations from leased facilities. The initial terms of the leases are generally 20 years. The majority of the leases include one or more renewal options and provide that the Company pay property taxes, utilities, repairs and certain other costs incidental to occupation of the premises. Several leases contain clauses calling for percentage rentals based upon gross sales of the supermarket occupying the leased space. The Company also leases a portion of its equipment under operating leases, including leases derived from sale/leaseback transactions, with initial terms of three to five years. Step rent provisions, escalation clauses, capital improvements and other lease concessions are taken into account in computing minimum lease payments, which are recognized on a straight-line basis over the minimum lease term.

 

Operating Leases—Rent expense for all operating leases of $14.2 million, $15.0 million and $15.8 million for fiscal years 2012, 2011 and 2010, respectively, is included in operating and administrative expenses. Sub-lease rental income of $0.2 million, $0.2 million and $0.6 million for fiscal years 2012, 2011 and 2010, respectively, is included as a reduction of rental expense.

 

The components of aggregate minimum rental commitments under non-cancelable operating leases as of September 29, 2012 are as follows:

 

                         

Fiscal Year

   Minimum
Rental
Commitment		     Sub-Lease
Income		     Net
Rental
Commitment		  

2013

   $ 12,950,490     $ (211,000 )    $ 12,739,490  

2014

     11,696,302       (219,000 )      11,477,302  

2015

     10,608,883       —         10,608,883  

2016

     9,494,199       —         9,494,199  

2017

     8,782,789       —         8,782,789  

Thereafter

     57,481,400       —         57,481,400  
   

 

 

    

 

 

    

 

 

  

Total minimum future rental commitments

   $ 111,014,063     $ (430,000 )    $ 110,584,063