Ethan Allen Interiors Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 7 - Leases

Note 7 - Leases

12 Months Ended

Jun. 30, 2015

Leases of Lessee Disclosure [Text Block]

(7) Leases

We lease real property and equipment under various operating lease agreements expiring at various times through 2039. Leases covering retail design center locations and equipment may require, in addition to stated minimums, contingent rentals based on retail sales or equipment usage. Generally, the leases provide for renewal for various periods at stipulated rates. Future minimum lease payments under non-cancelable operating leases for each of the five fiscal years subsequent to June 30, 2015, and thereafter are shown in the table following. Also shown are minimum future rentals from subleases, which will partially offset lease payments in the aggregate (in thousands):

Fiscal Year Ended June 30
	Minimum		Minimum
	Future		Future
	Lease		Sublease
	Payments		Rentals
2016	$	31,255	$	1,688
2017		28,090		1,563
2018		26,253		1,462
2019		22,724		912
2020		20,021		709
Subsequent to 2020		80,907		1,215
Total	$	209,250	$	7,549

Total rent expense for each of the past three fiscal years ended June 30 was as follows (in thousands):

	2015			2014			2013
Basic rentals under operating leases	$	31,220		$	31,168		$	32,020
Contingent rentals under operating leases		160			215			57
		31,380			31,383			32,077
Less: sublease rent		(3,062	)		(2,494	)		(2,034	)
Total rent expense	$	28,318		$	28,889		$	30,043

As of June 30, 2015 and 2014, deferred rent credits totaling $12.4 million and $12.5 million, respectively, and deferred lease incentives totaling $3.8 million and $3.1 million, respectively, are reflected in the Consolidated Balance Sheets. These amounts are amortized over the respective underlying lease terms on a straight-line basis as a reduction of rent expense.