Commitments and License Rights

7 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure

10. Commitments and License Rights

Lease Commitments - The Company leases real estate under various noncancellable operating leases with an initial term greater than one year that contain multiple renewal options, exercisable at the Company’s option. The Company recognizes rent expense on a straight-line basis over the expected lease term, including cancelable option periods where failure to exercise such options would result in an economic penalty. Percentage rentals are based on the revenues at the specific rented property. Rent expense charged to operations under these leases was as follows:

	31 Weeks Ended		Year Ended
	December 31, 2015		May 28, 2015		May 29, 2014		May 30, 2013
	(in thousands)
Fixed minimum rentals	$	4,693	$	8,064	$	7,995	$	8,024
Amortization of favorable lease right		194		334		334		334
Percentage rentals		153		193		193		60
	$	5,040	$	8,591	$	8,522	$	8,418

Aggregate minimum rental commitments under long-term operating leases, assuming the exercise of certain lease options, are as follows at December 31, 2015:

Fiscal Year	(in thousands)
2016	$	7,750
2017		7,972
2018		8,085
2019		8,198
2020		8,138
Thereafter		77,967
	$	118,110

Commitments - The Company has commitments for the completion of construction at various properties totaling approximately $16,337,000 at December 31, 2015.

License Rights - The Company has license rights to operate three hotels using the Hilton trademark, one hotel using the InterContinental trademark and two hotels using the Marriott trademark. Under the terms of the licenses, the Company is obligated to pay fees based on defined gross sales.