Annual report pursuant to Section 13 and 15(d)

Note 7 - Leases

v3.10.0.1
Note 7 - Leases
 12 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
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, 2018,
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):
 
   
Future Minimum
    
Future Minimum
  
Fiscal Year Ended June 30,
  
Lease Payments
    
Sublease Rentals
  
2019
   $
34,391
     $
2,313
  
2020
    
29,231
     $
1,800
  
2021
    
26,120
      
1,611
  
2022
    
22,332
      
1,505
  
2023
    
16,866
      
1,077
  
Subsequent to 2023
    
47,046
      
1,124
  
Total
   $
175,986
     $
9,430
  
 
Total rent expense for each of the past
three
fiscal years ended
June 30
was as follows (in thousands):
 
   
2018
    
2017
    
2016
  
Basic rentals under operating leases
   $
33,734
     $
33,033
     $
31,692
  
Contingent rentals under operating leases
    
133
      
142
      
180
  
Basic and contingent rentals
    
33,867
      
33,175
      
31,872
  
Less: sublease rent
    
(1,853
 )    
(1,824
 )    
(1,964
 )
Total rent expense
   $
32,014
     $
31,351
     $
29,908
  
 
 
ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES
 
Deferred rent credits and deferred lease incentives are reflected in the Consolidated Balance Sheets under the caption other long-term liabilities, and are amortized over the respective underlying lease terms on a straight-line basis as a reduction of rent expense. Amounts recorded are as follows:
 
   
June 30,
  
   
2018
    
2017
  
Deferred rent credits
   $
13,157
     $
13,876
  
Deferred lease incentives
   $
4,532
     $
5,238