Sonic 2014 Annual Report Download - page 38

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Leasing Arrangements as a Lessee
Certain Company Drive-Ins lease land and buildings from third parties. These leases, with lease terms expiring through
August 2030, include provisions for contingent rents that may be paid on the basis of a percentage of sales in excess of stipulated
amounts. For the majority of leases, the land portions are classified as operating leases, and the building portions are classified
as capital leases.
Future minimum rental payments required under operating leases and maturities under capital leases that have initial or
remaining noncancelable lease terms in excess of one year as of August 31, 2014, are as follows:
Operating Capital
Years ended August 31:
2015 $ 11,274 $ 5,149
2016 10,631 5,115
2017 9,815 4,470
2018 9,410 4,161
2019 8,232 3,402
Thereafter 75,609 12,799
Total minimum lease payments(1) $ 124,971 35,096
Less amount representing interest averaging 6.5% (8,353)
Present value of net minimum lease payments 26,743
Less amount due within one year (3,693)
Amount due after one year $ 23,050
(1) Minimum payments have not been reduced by future minimum rentals receivable under noncancelable operating and capital
subleases of $10.6 million and $1.6 million, respectively. They also do not include contingent rentals which may be due under
certain leases. Contingent rentals for capital leases amounted to $0.8 million in fiscal years 2014, 2013 and 2012.
Total rent expense for all operating leases consists of the following for the years ended August 31:
2014 2013 2012
Minimum rentals $ 12,449 $ 13,154 $ 14,555
Contingent rentals 161 93 103
Total rent expense 12,610 13,247 14,658
Less sublease rentals (1,905) (1,747) (2,851)
Net rent expense $ 10,705 $ 11,500 $ 11,807
Notes to Consolidated Financial Statements
August 31, 2014, 2013 and 2012 (In thousands, except per share data)
36