Annual report pursuant to Section 13 and 15(d)

Note 8 - Leases

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Note 8 - Leases
12 Months Ended
Jun. 30, 2012
Leases of Lessee Disclosure [Text Block]
(8)           Leases

We lease real property and equipment under various operating lease agreements expiring through 2033. 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, 2011, and thereafter are as follows (in thousands):

Fiscal Year Ended June 30
 
2012
 
2013
  $ 31,275  
2014
    24,826  
2015
    22,326  
2016
    18,639  
2017
    15,773  
Subsequent to 2017
    75,228  
Total minimum lease payments
  $ 188,067  

The above amounts will be partially offset in the aggregate by minimum future rentals from subleases of $9.3 million, which are due to be received as follows: $2.2 million in 2013; $1.9 million in 2014; $1.7 million in 2015; $0.9 million in 2016; $0.9 million in 2017; and $1.7 million subsequent to 2017.

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

   
2012
   
2011
   
2010
 
Basic rentals under operating leases
  $ 30,895     $ 30,834     $ 33,334  
Contingent rentals under operating leases
    109       135       121  
      31,004       30,969       33,455  
Less: sublease rent
    (1,656 )     (1,621 )     (957 )
Total rent expense
    29,348       29,348       32,498  

As of June 30, 2012 and 2011, deferred rent credits totaling $11.6 million and $11.9 million, respectively, and deferred lease incentives totaling $2.3 million and $2.7 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.