El Pollo Loco 2015 Annual Report Download - page 84

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Table of Contents
EL POLLO LOCO HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
instances, contingent rent based on a percentage of gross operating profit or gross revenues in excess of a defined amount. Initial terms of land
and restaurant building leases generally are not less than 20 years, exclusive of options to renew. Leases of equipment primarily consist of
restaurant equipment, computer systems and vehicles. The Company subleases facilities to certain franchisees and other non-related parties
which are recorded on a straight-line basis.
Information regarding the Company’s future lease obligations at December 31, 2014 is as follows (in thousands):
Net rent expense is as follows (in thousands):
Base rent and contingent rent are included in occupancy and other operating expenses, while sublease income is included in franchise revenue in
the accompanying consolidated statements of operations. Sublease income includes contingent rental income of $1.6 million, $1.7 million, and
$1.6 million for fiscal 2014, 2013, and 2012, respectively.
The Company is a lessor for certain property, facilities and equipment owned by the Company and leased to others, principally franchisees,
under noncancelable leases with initial terms ranging from three to nine years. The lease agreements generally provide for a fixed base rent and,
in some instances, contingent rent based on a percentage of gross operating profit or gross revenues. Total rental income included in franchise
revenue in the accompanying consolidated statements of operations for leased property was $401,000, $377,000 and $366,000 for fiscal 2014,
2013, and 2012, respectively.
80
Capital Leases
Operating Leases
For the Years Ending
Minimum
Lease
Payments
Minimum
Sublease
Income
Minimum
Lease
Payments
Minimum
Sublease
Income
December 30, 2015
$
320
$
72
$
19,917
$
1,139
December 29, 2016
259
72
20,175
1,161
December 28, 2017
199
28
19,645
1,117
December 26, 2018
172
—
18,087
970
December 25, 2019
95
—
16,514
624
Thereafter
154
—
117,795
1,764
Total
$
1,199
$
172
$
212,133
$
6,775
Less: imputed interest (11.0% to 14.8%)
(353
)
Present value of capital lease obligations
846
Less: current maturities
(208
)
Noncurrent portion
$
638
For the Years Ended
December 31,
2014
December 25,
2013
December 26,
2012
Base rent
$
19,067
$
18,732
$
18,331
Contingent rent
350
491
418
Less: sublease Income
(3,572
)
(3,602
)
(3,489
)
Net rent expense
$
15,845
$
15,621
$
15,260