El Pollo Loco 2016 Annual Report Download - page 71

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EL POLLO LOCO HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Otherintangibleassetssubjecttoamortizationconsistofthefollowing(inthousands):
December 30, 2015 December 31, 2014
Favorableleaseholdinterest  $ 6,038   $ 6,038
Less:accumulatedamortization   (5,400 )   (5,260)
Totalfavorableleaseholdinterest,net  $ 638   $ 778
Unfavorableleaseholdinterest  $ (9,156)  $ (9,156)
Less:accumulatedamortization   7,908    7,612
Unfavorableleaseholdinterestliability,net  $ (1,248)  $ (1,544)
Theestimatednetamortizationcredits(netliability)fortheCompany’sfavorableandunfavorableleaseholdinterestsforeachofthefivesucceedingfiscalyears
andthereafterisasfollows(inthousands):
For the Years Ending
Favorable Leasehold
Interest
Unfavorable
Leasehold
Interest
December28,2016  $ 130  $ (228)
December27,2017   106   (225)
December26,2018   97   (144)
December25,2019   94   (136)
December30,2020   85   (123)
Thereafter   126   (392)
Total  $ 638  $ (1,248)
TheaggregateamortizationexpensefortheyearsendedDecember30,2015,December31,2014,andDecember25,2013was$156,000,$227,000,and$213,000,
respectively.Theremainingweightedaverageamortizationperiodsofthefavorableleaseholdinterestandtheunfavorableleaseholdliabilityarefouryearsand
nineyearsrespectively.
5. LEASES
TheCompany’soperationsutilizeproperty,facilities,equipmentandvehiclesownedbytheCompanyorleasedfromothers.Buildingsandfacilitiesleasedfrom
othersareprimarilyforrestaurantsandsupportfacilities.Restaurantsareoperatedunderleasearrangementsthatgenerallyprovideforafixedbaserentand,in
someinstances,contingentrentbasedonapercentageofgrossoperatingprofitornetrevenuesinexcessofadefinedamount.Initialtermsoflandandrestaurant
buildingleasesgenerallyhavetermsof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30,2015isasfollows(inthousands):
Capital Leases Operating Leases
For the Years Ending
Minimum
Lease
Payments
Minimum
Sublease
Income
Minimum
Lease
Payments
Minimum
Sublease
Income
December28,2016  $ 259 $ 72   $ 21,588   $ 1,075 
December27,2017   199 28   22,078   1,025
December26,2018   172 —   20,755   864
December25,2019   95 —   19,359   671 
December30,2020   54 —   17,834   389 
Thereafter   100 —   145,568   1,651 
Total  $ 879 $ 100   $ 247,182   $ 5,675 
Less:imputedinterest(11.0%to14.8%) (241)        
Presentvalueofcapitalleaseobligations 638        
Less:currentmaturities (177)        
Noncurrentportion $ 461      
68