Amendment No. 3 to Form S-I Table of Contents Fogo de Chiio, Inc. Notes to Consolidated Financial Statements (Continued) (in thousands, except share and per share amounts) 5. Deferred Rent Deferred rent consists of the following: December 28, December 29, 2014 2013 Tenant allowance $ 6.772 4 5.836 Deferred rent 4.179 3,118 10,951 8,954 Current portion (309) (542) Total, less current portion $ 10,642 $ 8.412 Many of the Company's operating leases contain rent escalations at various periods during the applicable lease term. The Company recognizes rental expense for minimum lease payments for these leases on a straight-line basis over the base term of the lease. Any allowances from the landlord used for tenant improvements arc reflected as property and equipment with a corresponding credit to a liability account. Amounts recorded to normal tenant improvements are depreciated over the lesser of the asset's useful life or the lease term. Tlx: corresponding liability is amortized over the initial lease term. In connection with the 2012 Acquisition discussed in Note 1. the Company recognized at fair value both favorable lease assets and unfavorable lease liabilities. representing the difference between the market rates in effect for acquired leases compared to the various lease payments on individual operating leases. Favorable lease assets and unfavorable least liabilities are amortizA to rent expense on a straight-line basis over each respective operating lease tern. The amortization of favorable lease assets increases rent expense. while the amortization of unfavorable lease liabilities decreases rent expense. Favorable lease assets and unfavorable lease liabilities: December 28, December 29, 2014 2013 Favorable lease assets $ 738 $ 738 Less: Accumulated amortization O04 i (169) Foreign exchange impact (85) (45) Favorable least assets, net 5 3.19 $ 524 Unfavorable lease liabilities $ 2.128 S 2.128 Less: Ac