Antietam Corporation

Use the Note on Disclosure of Leases

question 63

Essay

Antietam Corporation

Use the note on disclosure of leases for Antietam Corporation to answer the questions that follow.

The Corporation leases office, warehouse and showroom space, retail stores and office equipment under operating leases, which expire no later than 2031. The Corporation normalizes fixed escalations in rental expense under its operating leases. Minimum annual rentals under noncancelable operating leases, excluding operating cost escalations and contingent rental amounts based upon retail sales, are payable as follows: $\begin{array}{l}\text { Fiscal year ending March 31, }\\\begin{array} { l r } 2017 & \$ 10,051,000 \\2018 & 11,121,000 \\2019 & 10,161,000 \\2020 & 9,063,000 \\2021 & 8,814,000 \\\text { Thereafter } & 46,681,000\end{array}\end{array}$ Rent expense was $12,551,000, $8,911,000, and $5,768,000 for the years ended March 31, 2016, 2015, and 2014, respectively.

-Review the information for Antietam Corporation.
Required
The note disclosure mentions contingent rent payments.What do you think this means with regard to Antietam Corporation?

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Definitions:

Action Potential

Action potential is the rapid change in electrical charge across a neuron's membrane, allowing for the transmission of nerve signals.

Interneurons

Neurons that transmit impulses between other neurons, especially as part of a reflex arc in the spinal cord or between sensory and motor neurons.

Messages

Pieces of information or communication transmitted between individuals through various means, including speech, writing, or signals.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.