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, 2017

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

(

)

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, 2017,

and thereafter are shown in the table below. Also shown are minimum future rentals from subleases, which will partially offset lease payments in the aggregate (in thousands):

	Minimum		Minimum
	Future		Future
	Lease		Sublease
Fiscal Year Ended June 30,	Payments		Rentals
2018	$	34,901	$	2,012
2019		31,157	$	1,469
2020		26,610		965
2021		24,118		776
2022		20,526		657
Subsequent to 2022		59,804		152
Total	$	197,116	$	6,031

Total rent expense for each of the past

three

fiscal years ended

June 30

was as follows (in thousands):

	2017			2016			2015
Basic rentals under operating leases	$	33,033		$	31,692		$	31,220
Contingent rentals under operating leases		142			180			160
Basic and contingent rentals		33,175			31,872			31,380
Less: sublease rent		(1,824	)		(1,964	)		(3,062	)
Total rent expense	$	31,351		$	29,908		$	28,318

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:

	2017		2016
Deferred rent credits	$	13,876	$	13,003
Deferred lease incentives	$	5,238	$	4,538