Chili's 2012 Annual Report Download - page 64

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Our debt agreements contain various financial covenants that, among other things, require the maintenance
of certain leverage and fixed charge coverage ratios. We are currently in compliance with all financial covenants.
Excluding capital lease obligations (see Note 9) our long-term debt maturities for the five years following
June 27, 2012 are as follows (in thousands):
Fiscal Year Long-Term Debt
2013 ................................................ $ 25,000
2014 ................................................ 314,709
2015 ................................................ 25,000
2016 ................................................ 25,000
2017 ................................................ 177,500
Thereafter ............................................ 0
$ 567,209
9. LEASES
(a) Capital Leases
We lease certain buildings under capital leases. The asset value of $39.4 million at June 27, 2012 and $39.8
million at June 29, 2011, and the related accumulated amortization of $16.2 million and $14.6 million at June 27,
2012 and June 29, 2011, respectively, are included in property and equipment. Amortization of assets under
capital leases is included in depreciation and amortization expense.
(b) Operating Leases
We lease restaurant facilities, office space and certain equipment under operating leases having terms
expiring at various dates through fiscal 2093. The restaurant leases have renewal clauses of 1 to 35 years at our
option and, in some cases, have provisions for contingent rent based upon a percentage of sales in excess of
specified levels, as defined in the leases. Rent expense for fiscal 2012, 2011, and 2010 was $101.3 million,
$101.0 million and $102.5 million, respectively. Contingent rent included in rent expense for fiscal 2012, 2011
and 2010 was $3.8 million, $4.1 million and $4.7 million, respectively.
(c) Commitments
As of June 27, 2012, future minimum lease payments on capital and operating leases were as follows (in thousands):
Fiscal Year Capital Leases Operating Leases
2013 ................................... $ 5,473 $ 100,287
2014 ................................... 5,581 92,545
2015 ................................... 5,692 81,617
2016 ................................... 5,806 67,976
2017 ................................... 5,709 44,992
Thereafter .............................. 47,690 102,219
Total minimum lease payments(a) ....... 75,951 $ 489,636
Imputed interest (average rate of 7%) ..... (27,936)
Present value of minimum lease
payments ......................... 48,015
Less current installments ............... (2,334)
$ 45,681
(a) Future minimum lease payments have not been reduced by minimum sublease
rentals due in the future under non-cancelable subleases. Sublease rentals are
approximately $39.8 million and $55.7 million for capital and operating
subleases, respectively.
F-28