LEASES
We lease certain stores, office facilities, warehouses, computers and transportation equipment.
Operating and capital lease obligations are based upon contractual minimum rents and, for certain stores, amounts in excess of these minimum rents are payable based upon specified percentages of sales. Contingent rent is accrued over the lease term, provided that the achievement of the specified sales level that triggers the contingent rental is probable. Certain leases include renewal or purchase options.
Rental expense for operating leases was as follows:
|
| | | | | | | | | | | | |
millions | | 2013 | | 2012 | | 2011 |
Minimum rentals | | $ | 762 |
| | $ | 824 |
| | $ | 837 |
|
Percentage rentals | | 15 |
| | 17 |
| | 19 |
|
Less-Sublease rentals | | (56 | ) | | (47 | ) | | (30 | ) |
Total | | $ | 721 |
| | $ | 794 |
| | $ | 826 |
|
Minimum lease obligations, excluding taxes, insurance and other expenses payable directly by us, for leases in effect at February 1, 2014, were as follows:
|
| | | | | | | | |
| | Minimum Lease Commitments |
millions | | Capital | | Operating |
2014 | | $ | 102 |
| | $ | 684 |
|
2015 | | 90 |
| | 605 |
|
2016 | | 73 |
| | 499 |
|
2017 | | 51 |
| | 383 |
|
2018 | | 32 |
| | 289 |
|
Later years | | 131 |
| | 1,314 |
|
Total minimum lease payments(1) | | 479 |
| | 3,774 |
|
Less-minimum sublease income | | |
| | (128 | ) |
Net minimum lease payments | | |
| | $ | 3,646 |
|
Less: | | |
| | |
|
Estimated executory costs | | (41 | ) | | |
|
Interest at a weighted average rate of 6.4% | | (92 | ) | | |
|
Capital lease obligations | | 346 |
| | |
|
Less current portion of capital lease obligations | | (70 | ) | | |
|
Long-term capital lease obligations | | $ | 276 |
| | |
|
_____________
| |
(1) | Sears Canada: Total operating minimum lease payments of $379 million. |
