Popeye's 2013 Annual Report Download - page 77

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Popeyes Louisiana Kitchen, Inc.
Notes to Consolidated Financial Statements
For Fiscal Years 2013, 2012, and 2011 — (Continued)
61
At December 29, 2013,future minimum payments under capital and non-cancelable operating leases were as follows:
(in millions)
Capital
Leases
Operating
Leases
2014 $0.3 $7.0
2015 0.3 6.8
2016 0.2 6.5
2017 0.2 6.3
2018 0.2 5.7
Thereafter 4.9 86.5
Future minimum lease payments 6.1 118.8
Less amounts representing interest 3.9 —
$2.2 $118.8
During 2013,2012, and 2011, rental expense was approximately $6.0 million,$5.9 million, and $5.9 million,
respectively, including contingent rentals of $0.2 million, and $0.2 million in 2012 and 2011, respectively. There were
no significant contingent rental expense in 2013. At December 29, 2013,the implicit rate of interest on capital leases
ranged from 8.1% to 16.0%.
The Company leases certain restaurant properties and subleases other restaurant properties to franchisees. At
December 29, 2013,the aggregate gross book value and net book value of owned properties that were leased to
franchisees was approximately $30.0 million and $28.6 million, respectively. During 2013, 2012, and 2011, rental
income from these leases and subleases was approximately $5.4 million,$4.3 million, and $4.1 million, respectively.
At December 29, 2013, future minimum rental income associated with these leases and subleases, are approximately
$2.8 million in 2014, $2.6 million in 2015, $2.3 million in 2016, $2.0 million in 2017, $1.7 million in 2018, and $4.7
million thereafter.
Note 11 — Deferred Credits and Other Long-Term Liabilities
(in millions) 2013 2012
Deferred franchise revenues $ 3.5 $2.4
Deferred gains on unit conversions 1.0 1.1
Deferred rentals 7.4 7.0
Above-market rent obligations 2.6 2.7
Deferred income taxes 13.6 9.3
Other long-term liabilities 2.0 3.7
$30.1 $26.2
Note 12 — Common Stock
Share Repurchase Program. The Company’s Board of Directors has approved a share repurchase program. On
February 13, 2013 the Board of Directors approved an additional $50.0 million for the share repurchase program.
During 2013, 2012 and 2011, we repurchased and retired 504,295 shares, 741,228 shares and 1,465,436 shares of
common stock for approximately $19.9 million,$15.2 million and $22.3 million, respectively.
The remaining value of shares that may be repurchased under the program was $31.5 million.Pursuant to the terms
of the Company’s2013 Credit Facility,the Company may repurchase its common stock when the Total Leverage Ratio
is less than 3.00 to 1.0. Total Leverage Ratio, as defined in the 2013 Credit Facility,is the ratio of the Company’s