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Operating Leases and Other Commitments | 12 Months Ended
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Mar. 29, 2014
Operating Leases and Other Commitments [Abstract] |
Operating Leases And Other Commitments | NOTE 1 1 – OPERATING LEASES AND OTHER COMMITMENTS We lease retail facilities under noncancellable lease agreements which expire at various dates through fiscal 2032. In addition to stated minimum payments, certain real estate leases have provisions for contingent rentals when retail sales exceed specified levels. Generally, the leases provide for renewal for various periods at stipulated rates. Most of the facilities' leases require payment of property taxes, insurance and maintenance costs in addition to rental payments, and several provide an option to purchase the property at the end of the lease term. In recent years, we have entered into agreements for the sale/leaseback of certain stores. Realized gains are deferred and are credited to income as rent expense adjustments over the lease terms. We have lease renewal options under the real estate agreements at projected future fair market values. Future minimum payments required under noncancellable leases (including closed stores) are as follows:
|  |  |  |  |  | Less - |  |  |
|  |  |  |  |  | Sublease |  |  |
Year Ending Fiscal March |  |  | Leases |  |  | Income |  |  | Net
|  |  | (Dollars in thousands)
2015 |  | $ | 33,547 |  | $ | (343) |  | $ | 33,204
2016 |  |  | 29,068 |  |  | (295) |  |  | 28,773
2017 |  |  | 24,218 |  |  | (200) |  |  | 24,018
2018 |  |  | 18,105 |  |  | (137) |  |  | 17,968
2019 |  |  | 11,363 |  |  | (55) |  |  | 11,308
Thereafter |  |  | 11,237 |  |  | (91) |  |  | 11,146
Total |  | $ | 127,538 |  | $ | (1,121) |  | $ | 126,417
Rent expense under operating leases, net of sublease inco me, totaled $32,841,000, $32,204,000 and $2 8,490,0 00 in fiscal 2014, 2013 and 2012, respectively, including contingent rental s of $59,000, $85,000 and $93,000 in each respective fiscal year. Subl ea se income totaled $533,000, $636,000 and $3 86,000, respectively, in fiscal 2014, 2013 and 2012. We enter into contracts with parts and tire suppliers, certain of which require us to buy (at market prices) up to 100% of our annual purchases of specific products. The agreements expire at var ious dates through July 2017. We believe these agreements provide us with high quality, branded merchandise at preferred pricing, along with strong marketing and training support. On August 7, 2012, we entered into a new e mployment a greement with our Executive Chairman, Robert G. Gross (the “2012 Agreement”). The 2012 Agreement became effective on October 1, 2012 and has a three-year term. Under the 2012 Agreement, Mr. Gross (i) is paid a base salary of $420,000; (ii) is eligible to earn a target annual bonus, pursuant to the terms of Monro's Management Incentive Compensation Plan, of up to 150% of his base salary upon the achievement of certain predetermined corporate objectives and (iii) participates in Monro's other incentive and welfare and benefit plans made available to executives. Mr. Gross is entitled to certain payments upon death, disability, a termination without Cause (as defined therein), a resignation by Mr. Gross for Good Reason (as defined therein) or a termination in the event of a Change in Control of the Company (as defined therein), all as set forth in detail in the Agreement. Prior to the existing agreement, we entered into an e mployment a greement with Mr. Gross, our then Chief Executive Officer (the “2007 Agreement”). The 2007 Agreement was effective on October 1, 2007 and had a five-year term. Under the 2007 Agreement, Mr. Gross (i) was paid a base salary of $840,000; (ii) was eligible to earn a target annual bonus, pursuant to the terms of Monro's Management Incentive Compensation Plan, of up to 150% of his base salary upon the achievement of certain predetermined corporate objectives and (iii) participated in Monro's other incentive and welfare and benefit plans made available to executives. Mr. Gross also received a special bonus of $750,000, paid in five annual installments of $150,000, which began on October 1, 2007 (the “Special Bonus”). If the 2007 Agreement terminated before October 1, 2012 either for Cause (as defined therein) or as the result of Mr. Gross's resignation without Good Reason (as defined therein), then Mr. Gross would have been required to repay a portion of the last-received annual installment of the Special Bonus, pro-rata to the date of termination. In consideration for Mr. Gross's covenant not-to-compete with Monro or to solicit its employees, Monro began paying him an additional $750,000, payable in five equal installments of $150,000, beginning on October 1, 2012. These payments will continue through October 1, 2016. On October 2, 2007, and in consideration for Mr. Gross's execution of the 2007 Agreement, Monro's Compensation Committee awarded to Mr. Gross an option to purchase 562,500 shares of Monro's Common Stock at an exercise price equal to the closing price of Monro's Common Stock on the date of the award of $15.20 per share, pursuant to our 2007 Stock Incentive Plan. As of October 1, 2010, th ese options were fully vested. (Both the number of shares and share price reflect the impact of the December 2010 stock split.) On August 7, 2012, we entered into a new e mployment a greement with John W. Van Heel in recognition of his promotion to Chief Executive Officer (the “Van Heel Agreement”). The Van Heel Agreement became effective on October 1, 2012 and has a five-year term. Under the Van Heel Agreement, Mr. Van Heel (i) is paid a base salary of $550,000; (ii) is eligible to earn a target annual bonus, pursuant to the terms of Monro's Management Incentive Compensation Plan, of up to 150% of his base salary upon the achievement of certain predetermined corporate objectives and (iii) participates in Monro's other incentive and welfare and benefit plans made available to executives. Mr. Van Heel is entitled to certain payments upon death, disability, a termination without Cause (as defined therein), a resignation by Mr. Van Heel for Good Reason (as defined therein) or a termination in the event of a Change in Control of the Company (as defined therein), all as set forth in detail in the Van Heel Agreement. On October 1, 2012, and in consideration for his execution of the Van Heel Agreement, Monro's Compensation Committee awarded to Mr. Van Heel an option to purchase 300,000 shares of Monro's Common Stock at an exercise price equal to the closing price of Monro's Common Stock on the date of the award of $33.64 per share, pursuant to our 2007 Stock Incentive Plan. These options vest equally over four years, beginning October 1, 2013. In February 2014, the Company entered into a new employment agreement (the “Tomarchio Agreement”) with Joseph Tomarchio Jr., Executive Vice President. The Tomarchio Agreement became effective April 1, 2014, and superseded the Company's previous employment contract with Mr. Tomarchio, which was set to expire in December 2014. As planned, the Tomarchio Agreement extends Mr. Tomarchio's employment as an Executive Vice President of the Company through June 2017 at a reduced schedule. Under the terms of the Tomarchio Agreement, Mr. Tomarchio will render exclusive services to the Company, leading the Company's growing tire purchasing programs and related vendor relationships. In addition, he will continue to assist on sourcing acquisitions, provide input on advertising and marketing, and contribute at field meetings. Under the Tomarchio Agreement, Mr. Tomarchio (i) is paid a base salary of $242,500; (ii) is eligible to earn a target annual bonus, pursuant to the terms of the Company's bonus plan, of up to 87.5% of his base salary upon the achievement of certain predetermined corporate objectives, which is consistent with both other Company executives and Mr. Tomarchio's previous employment agreement; and (iii) participates in the Company's other incentive and welfare and benefit plans made available to executives. In addition, under the Agreement, Mr. Tomarchio is entitled to certain payments upon a termination without Cause (as defined therein), a resignation by Mr. Tomarchio for Good Reason (as defined therein) or a termination in the event of a Change in Control of the Company (as defined therein), all as set forth in detail in the Agreement. On December 30, 2010, we entered into e mployment a greements with Mr. Van Heel, then President of Monro; Mr. Tomarchio, then Executive Vice President Store Operations; and Catherine D'Amico, our Executive Vice President and Chief Financial Officer (collectively, the “Agreements”). All three Agreements became effective on January 1, 2011 and have a four-year term. Mr. Van Heel's agreement terminated in connection with his promotion to Chief Executive Officer and execution of his new employment agreement effective October 1, 2012. Mr. Tomarchio's agreement terminated in connection with his change in responsibilities and execution of his new employment agreement effective April 1, 2014. Under the Agreement, Ms. D'Amico (i) is entitled to an annual base salary; (ii) is eligible to earn a target bonus, pursuant to the terms of the Monro's bonus plan, up to 87.5% of her base salary, upon the achievement of certain predetermined corporate objectives and (iii) participate in Monro's other incentive and welfare and benefit plans made available to executives. The base salary of each executive is reviewed annually by Monro's Compensation Committee and may be increased to reflect performance and responsibilities of each such executive. Finally, Ms. D'Amico is entitled to certain payments upon death, disability, and termination without Cause (as defined in the Agreement), a resignation by the executive for Good Reason (as defined in the Agreement) or a termination in the event of a Change in Control of the Company (as defined in the Agreement), all set f orth in detail in the Agreement. Also, on December 30, 2010 and in consideration of the executives' execution of the Agreements, Monro's Compensation Committee awarded to Messrs. Van Heel and Tomarchio and Ms. D'Amico an option to purchase 150,000, 120,000 and 90,000 shares of Monro's Common Stock, respectively, at an exercise price equal to the closing price of Monro's Common Stock on the date of the award of $35.31 per share, pursuant to our 2007 Stock Incentive Plan (together, the “Executive Options”). Each of the Executive Options vest equally over four years, beginning December 30, 2011. In accordance with the policy adopted by Monro's Compensation Committee in May 2009, no executives' contracts include any provision for the payment of what is commonly referred to as an “excise tax gross-up” with respect to payments received by an executive upon a Change in Control (as defined in the Agreements).

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