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Leases | 12 Months Ended
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Dec. 31, 2016
Leases [Abstract] |
Leases | Note 10 – Leases A substantial portion of the Company’s retail stores and warehouse properties are operated in leased facilities. The Company also leases small ancillary warehouse facilities, the tractor and trailer fleet, and certain other equipment. Most of the property leases contain renewal options of varying terms. Terms of certain leases contain provisions requiring payment of percentage rent based on sales and payment of executory costs such as property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premises. Terms of certain leases of transportation equipment contain provisions requiring payment of percentage rent based upon miles driven. Certain properties or portions thereof are subleased to others. Operating leases often contain renewal options. In those locations in which it makes economic sense to continue to operate, management expects that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Rental expense, net of sublease income, under operating leases consisted of the following:
|  |  |  |  |  |  |  |  |  |  |  |  | December 31, |  |  | January 2, |  |  | January 3, |
|  |  |  |  |  |  |  |  |  |  |  |  | 2016 |  |  | 2016 |  |  | 2015 |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  | (52 Weeks) |  |  | (52 Weeks) |  |  | (53 Weeks) |
Minimum rentals | $ |  | 57,478 |  |  | $ |  | 57,625 |  |  | $ |  | 56,848 |
Contingent rental payments |  |  | 314 |  |  |  |  | 267 |  |  |  |  | 563 |
Sublease rental income |  |  | (4,830 | ) |  |  |  | (5,311 | ) |  |  |  | (5,027 | )
Total |  |  |  |  |  |  |  |  |  |  |  |  | $ |  | 52,962 |  |  | $ |  | 52,581 |  |  | $ |  | 52,384 |
The Company’s total future lease commitments under operating and capital leases in effect at December 31, 2016 are as follows:
|  |  |  |  |  |  |  |  |  | Operating Leases |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Used in |  |  | Subleased |  |  |  |  |  | Capital |
(In thousands) |  |  |  |  |  |  |  |  |  | Operations |  |  | to Others |  |  | Total |  |  | Leases |
Fiscal Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2017 |  |  |  |  |  |  |  |  |  | $ |  | 49,236 |  |  | $ |  | 1,836 |  |  | $ |  | 51,072 |  |  | $ |  | 9,261 |
2018 |  |  |  |  |  |  |  |  |  |  |  | 43,231 |  |  |  |  | 1,822 |  |  |  |  | 45,053 |  |  |  |  | 9,048 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 32,681 |  |  |  |  | 1,362 |  |  |  |  | 34,043 |  |  |  |  | 8,643 |
2020 |  |  |  |  |  |  |  |  |  |  |  | 25,723 |  |  |  |  | 1,087 |  |  |  |  | 26,810 |  |  |  |  | 6,449 |
2021 |  |  |  |  |  |  |  |  |  |  |  | 18,258 |  |  |  |  | 694 |  |  |  |  | 18,952 |  |  |  |  | 4,489 |
Thereafter |  |  |  |  |  |  |  |  |  |  |  | 76,745 |  |  |  |  | 972 |  |  |  |  | 77,717 |  |  |  |  | 32,961 |
Total |  |  |  |  |  |  |  |  |  | $ |  | 245,874 |  |  | $ |  | 7,773 |  |  | $ |  | 253,647 |  |  |  |  | 70,851 |
|  |  |  |  |  |  |  |  |  | Interest |  |  |  |  | (22,596 | )
|  |  |  |  |  |  |  |  |  | Present value of minimum lease obligations |  |  |  |  | 48,255 |
|  |  |  |  |  |  |  |  |  | Current maturities |  |  |  |  | 5,867 |
|  |  |  |  |  |  |  |  |  | Long-term capitalized lease obligations |  |  | $ |  | 42,388 |
Assets held under capital leases consisted of the following:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 31, |  |  | January 2, |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2016 |  |  | 2016 |
Building and improvements |  | $ |  | 61,831 |  |  | $ |  | 72,297 |
Equipment |  |  |  | 3,403 |  |  |  |  | 5,281 |
Assets under capitalized leases |  |  |  | 65,234 |  |  |  |  | 77,578 |
Less accumulated amortization and depreciation |  |  |  | 25,163 |  |  |  |  | 31,372 |
Net assets under capitalized leases |  | $ |  | 40,071 |  |  | $ |  | 46,206 |
Amortization expense for property under capital leases was $5.2 million, $3.6 million and $4.4 million in fiscal years ended December 31, 2016, January 2, 2016 and January 3, 2015, respectively. Certain retail store facilities, either owned or obtained through leasing arrangements, are leased to others. A majority of the leases provide for minimum and contingent rentals based upon stipulated sales volumes and contain renewal options. Certain of the leases contain escalation clauses. Owned assets, included in property and equipment, which are leased to others are as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 31, |  |  | January 2, |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2016 |  |  | 2016 |
Land and improvements | $ |  | 3,860 |  |  | $ |  | 3,508 |
Buildings |  |  | 13,948 |  |  |  |  | 10,640 |
Long-term debt and capital lease obligations |  |  | 17,808 |  |  |  |  | 14,148 |
Less accumulated amortization and depreciation |  |  | 7,625 |  |  |  |  | 5,890 |
Net property | $ |  | 10,183 |  |  | $ |  | 8,258 |
Future minimum rentals to be received under lease obligations in effect at December 31, 2016 are as follows:
| Fiscal Year |  |  |  |  |  |  |
(In thousands) | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | Thereafter |  |  | Total |
Owned property | $ |  | 3,158 |  |  | $ |  | 2,119 |  |  | $ |  | 1,326 |  |  | $ |  | 963 |  |  | $ |  | 694 |  |  | $ |  | 839 |  |  | $ |  | 9,099 |
Leased property |  |  | 4,372 |  |  |  |  | 3,384 |  |  |  |  | 2,122 |  |  |  |  | 1,571 |  |  |  |  | 854 |  |  |  |  | 1,118 |  |  |  |  | 13,421 |
Total | $ |  | 7,530 |  |  | $ |  | 5,503 |  |  | $ |  | 3,448 |  |  | $ |  | 2,534 |  |  | $ |  | 1,548 |  |  | $ |  | 1,957 |  |  | $ |  | 22,520 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6455398&loc=d3e45280-112737 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6452660&loc=d3e36991-112694 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6453985&loc=d3e41499-112717 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph (Note 1,3) -URI http://asc.fasb.org/extlink&oid=6584154&loc=d3e38371-112697 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12069-110248 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6453985&loc=d3e41502-112717 + Details
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