Annual report pursuant to Section 13 and 15(d)

Note 7 - Leases

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Note 7 - Leases
12 Months Ended
Jun. 30, 2014
Leases [Abstract]  
Leases of Lessee Disclosure [Text Block]

(7)     Leases


We lease real property and equipment under various operating lease agreements expiring at various times through 2034. 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, 2014, 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, 2014

 
   

Minimum

Future

Lease

Payments

   

Minimum

Future

Sublease

Rentals

 

2015

  $ 30,744     $ 2,452  

2016

    27,222       1,685  

2017

    23,987       1,552  

2018

    22,245       1,451  

2019

    18,571       900  

Subsequent to 2019

    72,376       1,888  

Total

  $ 195,145     $ 9,928  

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


   

2014

   

2013

   

2012

 

Basic rentals under operating leases

  $ 28,653     $ 30,014     $ 30,895  

Contingent rentals under operating leases

    231       75       109  
      28,884       30,089       31,004  

Less: sublease rent

    (2,494 )     (2,034 )     (1,656 )

Total rent expense

  $ 26,390     $ 28,055     $ 29,348  

As of June 30, 2014 and 2013, deferred rent credits totaling $12.5 million and $11.9 million, respectively, and deferred lease incentives totaling $3.1 million and $1.9 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.