Lease Commitments

12 Months Ended

Dec. 31, 2017

(9)	Lease Commitments

The Company currently leases stores, distribution and headquarters facilities under non-cancelable operating leases. The Company’s leases generally contain multiple renewal options for periods ranging from five to ten years and require the Company to pay all executory costs such as maintenance and insurance. Certain of the Company’s store leases provide for the payment of contingent rent based on a percentage of sales.

Rent expense for operating leases consisted of the following:

	Year Ended
	December 31, 2017		January 1, 2017		January 3, 2016
	(In thousands)
Rent expense	$	75,250	$	72,631	$	71,541
Contingent rent		393		513		654
Total rent expense	$	75,643	$	73,144	$	72,195

Future minimum lease payments under non-cancelable leases as of December 31, 2017 are as follows:

Year Ending:	Capital Leases			Operating Leases		Total
	(In thousands)
2018	$	1,933		$	80,889	$	82,822
2019		1,526			71,192		72,718
2020		1,045			57,131		58,176
2021		361			41,143		41,504
2022		26			29,061		29,087
Thereafter		—			58,019		58,019
Total minimum lease payments ⁽¹⁾		4,891		$	337,435	$	342,326
Imputed interest		(337	)
Present value of minimum lease payments	$	4,554

⁽¹⁾	Minimum lease payments have not been reduced by sublease rentals of $0.7 million due in the future under non-cancelable subleases.

In the fourth quarter of fiscal 2016, the Company entered into an assignment agreement for a certain store lease. In consideration for the assignment, the Company received an assignment fee of $4.3 million. The assignment is accounted for as a sublease arrangement and the assignment fee has been deferred into accrued expenses and other long-term liabilities in the accompanying consolidated balance sheets. The remaining balance of the deferred lease revenue as of the end of fiscal 2017 was $2.9 million, and $0.9 million per year will be recognized ratably into revenue over the remaining lease term of approximately three years.