Dunkin' Donuts 2012 Annual Report Download - page 82

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-72-
Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands):
December 29,
2012
December 31,
2011
Leased property under capital leases (included in property and equipment) $ 7,902 5,097
Less accumulated depreciation (2,003)(1,510)
Net leased property under capital leases $ 5,899 3,587
Capital lease obligations:
Current $ 371 232
Long-term 7,251 4,928
Total capital lease obligations $ 7,622 5,160
Capital lease obligations exclude that portion of the minimum lease payments attributable to land, which are classified
separately as operating leases. Interest expense associated with the capital lease obligations is computed using the incremental
borrowing rate at the time the lease is entered into and is based on the amount of the outstanding lease obligation. Depreciation
on capital lease assets is included in depreciation expense in the consolidated statements of operations. Interest expense related
to capital leases for fiscal years 2012, 2011, and 2010 was $600 thousand, $481 thousand, and $505 thousand, respectively.
Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under
operating leases, where the Company is the lessor (in thousands):
December 29,
2012
December 31,
2011
Land $ 27,210 26,624
Buildings 39,242 38,472
Leasehold improvements 141,264 146,209
Store, production, and other equipment 149 62
Construction in progress 1,384 823
Assets leased to others, gross 209,249 212,190
Accumulated depreciation (71,100)(66,622)
Assets leased to others, net $ 138,149 145,568
Future minimum rental commitments to be paid and received by the Company at December 29, 2012 for all noncancelable
leases and subleases are as follows (in thousands):
Payments
Receipts
Subleases
Net
leases
Capital
leases
Operating
leases
Fiscal year:
2013 $ 981 53,658 (60,737)(6,098)
2014 1,000 52,690 (60,000)(6,310)
2015 1,033 47,555 (59,001)(10,413)
2016 1,037 46,427 (58,865)(11,401)
2017 1,059 46,450 (58,255)(10,746)
Thereafter 7,574 372,307 (369,847) 10,034
Total minimum rental commitments 12,684 $ 619,087 (666,705)(34,934)
Less amount representing interest 5,062
Present value of minimum capital lease
obligations $ 7,622
Rental expense under operating leases associated with franchised locations and company-owned locations is included in
occupancy expenses—franchised restaurants and company-owned restaurant expenses, respectively, in the consolidated
statements of operations. Rental expense under operating leases for all other locations, including corporate facilities, is included