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Leases | 12 Months Ended
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Dec. 29, 2018
Leases [Abstract] |
Leases | Note 10 – Leases A portion of the Company’s retail stores and warehouses are operated in leased facilities. The Company also leases small ancillary warehouse facilities, the majority of the tractors and trailers within its 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:
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Minimum rentals | $ |  | 61,774 |  |  | $ |  | 55,159 |  |  | $ |  | 57,478 |
Contingent rent (reductions) increases |  |  | (219 | ) |  |  |  | (237 | ) |  |  |  | 314 |
Sublease rental income |  |  | (3,554 | ) |  |  |  | (3,407 | ) |  |  |  | (4,830 | )
Total |  |  |  |  |  |  |  |  |  |  |  |  | $ |  | 58,001 |  |  | $ |  | 51,515 |  |  | $ |  | 52,962 |
The Company’s total future lease commitments under operating and capital leases in effect at December 29, 2018 are as follows:
|  |  |  |  |  |  |  |  |  | Operating Leases |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Used in |  |  | Subleased |  |  |  |  |  | Capital |
(In thousands) |  |  |  |  |  |  |  |  |  | Operations |  |  | to Others |  |  | Total |  |  | Leases |
2019 |  |  |  |  |  |  |  |  |  | $ |  | 54,098 |  |  | $ |  | 1,039 |  |  | $ |  | 55,137 |  |  | $ |  | 9,091 |
2020 |  |  |  |  |  |  |  |  |  |  |  | 47,212 |  |  |  |  | 817 |  |  |  |  | 48,029 |  |  |  |  | 7,049 |
2021 |  |  |  |  |  |  |  |  |  |  |  | 39,887 |  |  |  |  | 694 |  |  |  |  | 40,581 |  |  |  |  | 5,377 |
2022 |  |  |  |  |  |  |  |  |  |  |  | 32,299 |  |  |  |  | 468 |  |  |  |  | 32,767 |  |  |  |  | 4,685 |
2023 |  |  |  |  |  |  |  |  |  |  |  | 25,419 |  |  |  |  | 357 |  |  |  |  | 25,776 |  |  |  |  | 3,912 |
Thereafter |  |  |  |  |  |  |  |  |  |  |  | 75,626 |  |  |  |  | 147 |  |  |  |  | 75,773 |  |  |  |  | 25,152 |
Total |  |  |  |  |  |  |  |  |  | $ |  | 274,541 |  |  | $ |  | 3,522 |  |  | $ |  | 278,063 |  |  |  |  | 55,266 |
|  |  |  |  |  |  |  |  |  | Interest |  |  |  |  | (15,708 | )
|  |  |  |  |  |  |  |  |  | Present value of minimum lease obligations |  |  |  |  | 39,558 |
|  |  |  |  |  |  |  |  |  | Current maturities |  |  |  |  | 6,840 |
|  |  |  |  |  |  |  |  |  | Long-term capital lease obligations |  |  | $ |  | 32,718 |
Assets held under capital leases consisted of the following:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 29, |  |  | December 30, |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2018 |  |  | 2017 |
Building and improvements |  | $ |  | 57,326 |  |  | $ |  | 60,398 |
Equipment |  |  |  | 6,889 |  |  |  |  | 3,727 |
Assets under capital leases |  |  |  | 64,215 |  |  |  |  | 64,125 |
Less accumulated amortization and depreciation |  |  |  | 30,774 |  |  |  |  | 29,518 |
Net assets under capital leases |  | $ |  | 33,441 |  |  | $ |  | 34,607 |
Amortization expense for property under capital leases was $4.3 million, $4.4 million and $5.2 million in 2018, 2017 and 2016, 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 29, |  |  | December 30, |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2018 |  |  | 2017 |
Land and improvements | $ |  | 7,389 |  |  | $ |  | 6,515 |
Buildings |  |  | 28,932 |  |  |  |  | 24,236 |
Owned assets leased to others |  |  | 36,321 |  |  |  |  | 30,751 |
Less accumulated amortization and depreciation |  |  | 10,044 |  |  |  |  | 8,123 |
Net owned assets leased to others | $ |  | 26,277 |  |  | $ |  | 22,628 |
Future minimum rentals to be received under lease obligations in effect at December 29, 2018 are as follows:
(In thousands) | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | Thereafter |  |  | Total |
Owned property | $ |  | 4,876 |  |  | $ |  | 4,540 |  |  | $ |  | 4,243 |  |  | $ |  | 3,773 |  |  | $ |  | 2,754 |  |  | $ |  | 20,002 |  |  | $ |  | 40,188 |
Leased property |  |  | 2,993 |  |  |  |  | 2,594 |  |  |  |  | 1,888 |  |  |  |  | 1,597 |  |  |  |  | 1,274 |  |  |  |  | 3,316 |  |  |  |  | 13,662 |
Total | $ |  | 7,869 |  |  | $ |  | 7,134 |  |  | $ |  | 6,131 |  |  | $ |  | 5,370 |  |  | $ |  | 4,028 |  |  | $ |  | 23,318 |  |  | $ |  | 53,850 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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