Note 13 - Operating Leases

12 Months Ended

Aug. 27, 2014

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Note 13. Operating Leases

The Company conducts part of its operations from facilities that are leased under non-cancelable lease agreements. Lease agreements generally contain a primary term of five to 30 years with options to renew or extend the lease from one to 25 years. As of August 27, 2014, the Company has lease agreements for 99 properties which include the Company’s corporate office, facility service warehouses and restaurant properties. The leasing terms of the 99 properties consist of

11 properties expiring in less than one year, 72 properties expiring between one and five years and the remaining 16 properties having current terms that are greater than five years. Of the 99 leased properties, 75 properties have options remaining to renew or extend the lease.

A majority of the leases include periodic escalation clauses. Accordingly, the Company follows the straight-line rent method of recognizing lease rental expense.

As of August 27, 2014, the Company has entered into noncancelable operating lease agreements for certain office equipment with terms ranging from 36 to 72 months.

Annual future minimum lease payments under noncancelable operating leases with terms in excess of one year as of August 27, 2014 are as follows:

Year Ending:	(In thousands)
August 26, 2015		12,219
August 31, 2016		10,712
August 30, 2017		8,091
August 29, 2018		6,759
August 28, 2019		5,938
Thereafter		26,154
Total minimum lease payments	$	69,873

Most of the leases are for periods of fifteen to thirty years and some leases provide for contingent rentals based on sales in excess of a base amount.

Total rent expense for operating leases for the last three fiscal years was as follows:

	Year Ended
	August 27, 2014			August 28, 2013			August 29, 2012
	(In thousands, except percentages)
Minimum rent-facilities	$	12,999		$	13,488		$	11,132
Contingent rentals		251			182			235
Minimum rent-equipment		829			818			751
Total rent expense (including amounts in discontinued operations)	$	14,079		$	14,488		$	12,118
Percent of sales		3.6	%		3.7	%		3.5	%

See Note 15, “Related Parties,” for lease payments associated with related parties.