LensCrafters 2008 Annual Report Download - page 97

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Future minimum annual rental commitments are as follows (thousands of Euro):
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS |95 <
2008 2007 2006
Minimum rent 288,743 264,496 236,546
Contingent rent 55,464 60,177 64,091
Sublease income (26,017) (38,806) (35,955)
Totale 318,190 285,867 264,682
Year ending December 31,
2009 262,662
2010 221,936
2011 186,977
2012 156,085
2013 127,971
Thereafter 348,249
Total 1,303,880
Other commitments. The Company is committed to pay amounts in future periods for endorsement
contracts, supplier purchase and other long term commitments. Endorsement contracts are entered into
with selected athletes and others who endorse Oakley products. Oakley is often required to pay specified
minimal annual commitments and, in certain cases, additional amounts based on performance goals.
Certain contracts provide additional incentives based on the achievement of specified goals. Supplier
commitments have been entered into with various suppliers in the normal course of business.
Future minimum amounts to be paid for endorsement contracts and supplier purchase commitments at
December 31, 2008, are as follows (thousands of Euro):
Year ending December 31, Endorsement contracts Supplier commitments
2009 6,121 11,914
2010 2,811 11,898
2011 1,153 2,652
Thereafter 305 486
Total 10,390 26,950
Guarantees. The United States Shoe Corporation, a wholly owned subsidiary of the Company, remains
contingently liable on seven store leases in the United Kingdom. These leases were previously transferred
to third parties. The third parties have assumed all future obligations of the leases from the date each
agreement was signed. However, under the common law of the United Kingdom, the lessor still has the
right to seek payment of certain amounts from the Company if unpaid by the new obligor. If the
Company is required to pay under these guarantees, it has the right to recover amounts from the new
obligor. These leases will expire during various years until December 31, 2015. At December 31, 2008, the
maximum amount for which the Company’s subsidiary is contingently liable is Euro 5.2 million.
Cole has guaranteed future minimum lease payments for certain store locations leased directly by
franchisees. These guarantees aggregated approximately Euro 3.0 million at December 31, 2008.
Performance under a guarantee by the Company is triggered by default of a franchisee on its lease
commitment. Generally, these guarantees also extend to payments of taxes and other expenses payable
under the leases, the amounts of which are not readily quantifiable. The terms of these guarantees range