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The leases have varying terms, escalation clauses and renewal rights. Minimum lease payments are recognized on a straight-line basis. Leases run for varying terms that generally do not exceed 10 years, with options to renew (if any) that do not exceed 5 years. The majority of leases are net leases, which require additional payments for the cost of insurance, taxes, common area maintenance and utilities. Certain rental agreements include contingent rent, which is based on revenue exceeding a minimum amount. Minimum rentals, excluding rentals based upon revenue, are as follows:
Not later than one year $ 11,001Later than one year and not later than five years $ 29,589Later than 5 years $ 14,531 ----------------Total $ 55,121
Minimum lease payments, contingent rentals and sublease payments recognized as an expense are summarized as follows:
13 Weeks Ended 26 Weeks Ended -------------------------------------------------------- December 29, December 24, December 29, December 24, 2012 2011 2012 2011 --------------------------------------------------------Minimum lease payments recognized as an expense $ 2,924 $ 2,763 $ 5,729 $ 5,570Contingent rentals recognized as an expense $ 341 $ 241 $ 359 $ 242Sublease payments recognized as an expense - - - -
(b) Letters of credit:
As at December 29, 2012, the Company had outstanding letters of credit in the amount of $8,971 (December 24, 2011 - $6,342) for the importation of finished goods inventories to be received.
17. Financial Instruments:
(a) Fair value disclosure
The following table presents the carrying amount and the fair value of the Company's financial instruments:
December 29, 2012 December 24, 2011 ------------------------------------- Carrying Fair Carrying Fair Classification Maturity value value value value----------------------------------------------------------------------------Cash and cash Loans and Short- equivalents receivables term $ 30,849 $30,849 $ 31,803 $31,803Accounts Loans and Short- receivable receivables term $ 1,351 $ 1,351 $ 1,682 $ 1,682Payables and Financial Short- accruals liabilities term $ 18,537 $18,537 $ 16,010 $16,010Sales return Financial Short- provision liabilities term $ 1,716 $ 1,716 $ 1,451 $ 1,451Derivative Fair value financial through profit Short- instruments(1) and loss term $ (147) $ (147) $ 4 $ 4----------------------------------------------------------------------------(1) Included in payables and accruals for the 26 week period ended December 29, 2012 and included in accounts receivable for the 26 week period ended December 24, 2011.
The fair value of a financial instrument is the estimated amount that the Company would receive or pay to settle the financial assets and financial liabilities as at the reporting date. These estimates are subjective in nature, often involve uncertainties and the exercise of significant judgment and are made at a specific point in time, using available information about the financial instrument and may not reflect fair value in the future. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies.
