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, 2016

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, 2016, 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
2017	$	33,895	$	1,990
2018		32,197		2,009
2019		28,517		1,460
2020		24,439		956
2021		22,081		767
Subsequent to 2021		74,291		766
Total	$	215,420	$	7,948

ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES

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

	2016			2015			2014
Basic rentals under operating leases	$	31,692		$	31,220		$	31,168
Contingent rentals under operating leases		180			160			215
Basic and contingent rentals		31,872			31,380			31,383
Less: sublease rent		(1,964	)		(3,062	)		(2,494	)
Total rent expense	$	29,908		$	28,318		$	28,889

Deferred rent credits and deferred lease incentives are reflected in the Consolidated Balance Sheets and are amortized over the respective underlying lease terms on a straight-line basis as a reduction of rent expense. The amounts for the past two fiscal years are as follows:

	2016		2015
Deferred rent credits	$	13,003	$	12,362
Deferred lease incentives	$	4,538	$	3,762