GNC 2009 Annual Report Download - page 103

Table of Contents
GENERAL NUTRITION CENTERS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The composition of the Company's rental expense for all periods presented included the following components:
Successor Predecessor
Year Ended March 16- January 1- Year Ended
December 31, December 31, March 15, December 31,
2008 2007 2007 2006
(in thousands)
Retail stores:
Rent on long-term operating leases, net of sublease income $ 108,376 $ 83,867 $ 20,887 $ 99,194
Landlord related taxes 15,942 12,138 2,987 14,920
Common operating expenses 31,435 24,659 6,364 28,143
Percent rent 14,159 9,880 2,863 12,035
169,912 130,544 33,101 154,292
Truck fleet 4,363 3,441 904 4,295
Other 10,831 6,847 4,031 10,505
$ 185,106 $ 140,832 $ 38,036 $ 169,092
Minimum future obligations for non-cancelable operating leases with initial or remaining terms of at least one year in effect at December 31,
2008 are as follows:
Company Franchise
Retail Retail Sublease
Stores Stores Other Income Total
(in thousands)
2009 $ 94,665 $ 22,622 $ 5,839 $ (22,622) $ 100,504
2010 75,387 17,814 5,518 (17,814) 80,905
2011 59,915 13,918 4,706 (13,918) 64,621
2012 42,931 8,828 3,593 (8,828) 46,524
2013 28,718 3,730 1,992 (3,730) 30,710
Thereafter 68,334 3,093 3,149 (3,093) 71,483
$ 369,950 $ 70,005 $ 24,797 $ (70,005) $ 394,747
NOTE 16. COMMITMENTS AND CONTINGENCIES
Litigation
The Company is engaged in various legal actions, claims and proceedings arising in the normal course of business, including claims related
to breach of contracts, products liabilities, intellectual property matters and employment-related matters resulting from the Company's business
activities. As with most actions such as these, an estimation of any possible and/or ultimate liability cannot always be determined. The
Company continues to assess its requirement to account for additional contingencies in accordance with SFAS No. 5, "Accounting for
Contingencies." If the Company is required to make a payment in connection with an adverse outcome in these matters, it could have a
material impact on its financial condition and operating results.
As a manufacturer and retailer of nutritional supplements and other consumer products that are ingested by consumers or applied to their
bodies, the Company has been and is currently subjected to various product liability claims. Although the effects of these claims to date have
not been material to the Company, it is possible that current and future product liability claims could have a material adverse impact on its
business or financial condition. The Company currently maintains product liability insurance with a deductible/retention of $2.0 million per claim
with an aggregate cap on retained loss of $10.0 million. The 97