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LEASES
Minimum future rentals under non-cancelable leases
(primarily real estate and shopping center space) are (in
thousands):
Capital
Operating Operations
Fiscal Year
Leases
Leases
Held for Sale
1985
$ 10,739
$ 53,628
$ 6,192
1986
10,352
51,325
6,070
11 1987
9,953
48,796
5,878
1988
9,577
45,359
5,941
1989
9,109
42,411
5,916
Thereafter
79,108
370,275
44,718
Total minimum lease
payments
128,838
$611,794
$74,715
Amount representing
interest
(61,407)
Present value of
minimum lease
payments
67,431
Current portion of
capital lease
obligations
(5,927)
Long-term capital
lease obligations
$ 61,504
These future rentals have not been reduced by minimum sublease rentals of $87.4 million payable to the company under non-cancelable subleases.
Most leases contain one or more renewal options,
generally for five or 10-year periods.
Rent expense consists of:
1984 1983 1982
(in thousands)
Minimum rentals on
operating leases $ 52,232 $ 50,428 $ 47,907
Additional rentals based
on sales
-operating leases 35,862 28,950 20,477
-capital leases 1,709 2,505 3,358
$ 89,803 $ 81,883 $ 71,742
Payments to owners of
leased and managed
hotels $233,571 $182,656 $135,233
CAPITAL STOCK
One hundred million shares of common stock, with a
par value of $1 per share, are authorized. Treasury shares
aggregated 3,657,664 and 2,545,230 at December 28,
32
1984 and December 30,1983, respectively. One million
shares of unissued preferred stock, without par value, are
authorized.
Total common shares reserved at December 28,1984
are:
Employee stock option plan 2,360,731
Deferred stock compensation programs
(529,237 shares fully vested) 944,939
Employee qualified stock purchase plan 447,900
Restricted stock plan for key employees 25,000
Conversions of convertible subordinated debt 1,498
Total shares reserved 3,780,068
Under the employee stock option plan, options to purchase shares of common stock may be granted to key
employees at not less than 100% of the fair market value
on the date of grant All options expire ten years after the
date of grant and are exercisable in cumulative installments of one-fourth at the end of each of the first four
years. Activity under the plan is summarized below:
Shares Under Option
Balance, January 1,1982
Granted
Exercised
Canceled
Balance, December 31,1982
Granted
Exercised
Canceled
Balance, December 30,1983
Granted
Exercised
Canceled
Balance, December 28,1984
Number of Option Price
Shares Per Share
1,338,632 $ 9.31-41.56
355,290 36.25-60.94
(247,639)
(62,728)
1,383,555
341,565
(199,929)
(50,332)
1,474,859
351,055
(236,626)
(61,277)
1,528,011
9.31-33.44
9.69-49.56
9.69-60.94
51.38-76.13
9.69-49.56
10.74-73.25
9.69-76.13
59.75-73.75
9.69-73.25
9.94-76.13
9.69-76.13
At December 28,1984 options for 725,684 shares
were exercisable and 832,720 shares were available for
granting of additional options. No accounting is made for
options until they are exercised.
Shares of deferred bonus stock may be granted to key
employees and generally vest in annual pro rata installments commencing one year after grant and continuing
until retirement. However, upon termination all non-
vested shares are forfeited. The company accrues compensation expense for the fair market value of the shares on
the date of grant, less estimated forfeitures.
The purchase price for the shares reserved under the
employee qualified stock purchase plan is the lower of
market value at the beginning or end of the plan year.
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