Note 9 - Leases
|12 Months Ended|
Dec. 25, 2016
|Notes to Financial Statements|
|Leases of Lessee Disclosure [Text Block]||
2016,all of the Company-owned Ruth’s Chris Steak House restaurants operated in leased premises, with the exception of the restaurant in Ft. Lauderdale, FL, which is an owned property, and the restaurants in Anaheim, CA, Lake Mary, FL, Princeton, NJ and South Barrington, IL, which operate on leased land. The leases generally provide for minimum annual rental payments and are subject to escalations based, in some cases, upon increases in the Consumer Price Index, real estate taxes and other costs. In addition, certain leases contain contingent rental provisions based upon the sales at the underlying restaurants. Certain leases also provide for rent deferral during the initial term of such lease and/or scheduled minimum rent increases during the terms of the leases. For financial reporting purposes, rent expense is recorded on a straight-line basis over the life of the lease. Accordingly, included in liabilities in the accompanying consolidated balance sheets at
2015are accruals related to such rent deferrals and the pro rata portion of scheduled rent increases of approximately
$20.3million, respectively, net of the current portion included in other current liabilities
The Company also leases certain restaurant-related equipment under non-cancellable operating lease agreements with
thirdparties, which are included with leased premises in future minimum annual rental commitments.
Future minimum annual rental commitments under operating leases as of
2016are as follows (in thousands):
Pursuant to the terms of the Agreement, upon closing of the sale of the Mitchell’s Restaurants, Landry’s assumed the lease obligations of the Mitchell’s Restaurants. However, the Company has guaranteed Landry’s lease obligations aggregating
nineof the leases. The Company did not record a financial accounting liability for the lease guarantees, because the likelihood of Landry’s defaulting on the lease agreements was deemed to be remote. Landry’s also indemnified the Company in the event of a default under any of the leases. The Company did record a
$250thousand liability for its letter of credit obligation related to
oneof the leases. The above table does not include potential lease obligations for the Mitchell’s Restaurants.
Rental expense consists of the following and is included in restaurant operating expenses in the accompanying consolidated statements of income (in thousands):
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://www.xbrl.org/2003/role/presentationRef