Grenada Corporation Use the Note on Disclosure of Leases for the Grenada

question 85

Essay

Grenada Corporation
Use the note on Disclosure of Leases for the Grenada 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 2025.The Corporation normalizes fixed escalations in rental expense under its operating leases.Minimum annual rentals under non-cancelable operating leases,excluding operating cost escalations and contingent rental amounts based upon retail sales,are payable as follows:
Fiscal year ending March 31,
Rent expense was $12,551,000;$8,911,000;and $5,768,000 for the years ended March 31,2010,2009,and 2008 respectively.
Review the information for Grenada Corporation.
REQUIRED:
The note disclosure mentions contingent rent payments.What do you think this means with regard to Grenada Corporation?

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Definitions:

Gaming

The act of playing games, primarily video or computer games, often viewed as a form of entertainment or hobby.

Sexual

Pertaining to or involving sex, sexual activity, sexual organs, or sexual reproduction.

Media Violence

The depiction of violent acts in media outlets, such as television, movies, video games, and the internet, and its potential impact on behavior.

Aggression

Actions aimed at causing injury or frightening other individuals.