Annual report pursuant to section 13 and 15(d)

Commitments and Contingencies

v2.4.0.6
Commitments and Contingencies
12 Months Ended
Jan. 28, 2012
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES
16.

COMMITMENTS AND CONTINGENCIES

Lease commitments

We lease retail business locations, office and warehouse facilities, copier equipment and automotive equipment under various noncancelable capital and operating leases expiring in various years through 2027. Rent expense for operating leases for fiscal 2011, 2010 and 2009 was $165.1 million, $161.7 million and $158.7 million, respectively, and includes contingent rentals of $0.6 million, $0.3 million and $0.3 million, respectively. Sublease rentals of $0.7 million, $0.7 million and $0.8 million were received in fiscal 2011, 2010 and 2009, respectively. The total minimum future rentals to be received under noncancelable subleases as of January 28, 2012 are $0.3 million.

Minimum future rental payments under noncancelable capital and operating leases as of January 28, 2012 for each of the next five years and in the aggregate are as follows (in thousands):

 

                 

Fiscal Year

  Operating
Leases
    Capital
Leases
 

2012

  $ 152,860     $ 1,582  

2013

    136,031       1,535  

2014

    115,690       1,392  

2015

    98,573       1,046  

2016

    76,299       749  

Thereafter

    135,153       327  
   

 

 

   

 

 

 

Total

  $ 714,606       6,631  
   

 

 

         

Amounts representing interest

            (1,526
           

 

 

 

Capital lease obligations

          $ 5,105  
           

 

 

 

 

Leases on retail business locations specify minimum rentals plus common area maintenance charges and possible additional rentals based upon percentages of sales. Most of the retail business location leases provide for renewal options at rates specified in the leases. In the normal course of business, these leases are generally renewed or replaced by other leases.

At January 28, 2012, the gross capitalized balance and the accumulated amortization balance of our capital lease assets was $7.3 million and $2.4 million, respectively, resulting in a net capitalized value of $4.9 million. At January 29, 2011, the gross capitalized balance and the accumulated amortization balance of our capital lease assets was $5.1 million and $2.2 million, respectively, resulting in a net capitalized value of $2.9 million. Amortization expense was $1.1 million, $0.9 million and $1.0 million in fiscal 2011, 2010 and 2009, respectively, and is included in depreciation expense in the consolidated statement of earnings. These assets are included in furniture, fixtures and equipment on the consolidated balance sheets. The liability balance of these capital lease assets is included in deferred taxes and other liabilities on the consolidated balance sheets.

Legal matters

We are involved in various routine legal proceedings, including ongoing litigation, incidental to the conduct of our business. Management believes that none of these matters will have a material adverse effect on our financial position, results of operations or cash flows.