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Operating Leases
 12 Months Ended
Dec. 28, 2014
Leases [Abstract]  
Operating Leases

(10) Operating Leases

The Company leases office space for its corporate office and commercial spaces for its shops under various long-term operating lease agreements. The leases for the Company’s shop locations generally have initial terms of 10 years and typically provide for two renewal options in five-year increments as well as for rent escalations. These leases expire or become subject to renewal clauses at various dates from 2015 to 2029. Some of the leases provide for base rent, plus additional rent based on gross sales, as defined in each lease agreement. The Company is also generally obligated to pay certain real estate taxes, utilities, building operating expenses, insurance, and various other expenses related to properties.

 

Rental expense under operating lease agreements were as follows (in thousands):

 

     Fiscal Year  
     2014      2013      2012  

Minimum rentals

    $ 33,032       $ 30,234       $ 26,195   

Contingent rentals

      1,765         1,640         1,452   

Less: sublease rentals

      (94 )       (94 )       (96 ) 
  

 

 

     

 

 

     

 

 

  

Total

 $ 34,703    $ 31,780    $ 27,551   
  

 

 

     

 

 

     

 

 

  

A schedule by year of future minimum rental payments required under operating leases, excluding contingent rent, that have initial or remaining non-cancelable lease terms in excess of one year, as of December 28, 2014, is as follows (in thousands):

 

Years Ending

    Minimum  

2015

    $ 35,627   

2016

      34,288   

2017

      31,477   

2018

      27,318   

2019

      23,604   

Thereafter

      88,210   
  

 

 

  

Total minimum payments required*

 $ 240,524   
  

 

 

  

 

* Minimum payments have not been reduced by minimum sublease rentals of $0.6 million due in the future.

Certain leases have outstanding letters of credit in lieu of rent deposits expiring at various dates through November 2023. The letters of credit were $0.6 million in aggregate for each of the years ended December 30, 2012, December 29, 2013, and December 28, 2014. Under the credit facility, outstanding letters of credit are subject to an annual fee of 1.50% and reduce the available borrowing to the Company.