Best Buy 2015 Annual Report Download - page 92

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Table of Contents
85
8. Leases
The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in
fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
12-Month 12-Month 11-Month
2015 2014 2013
Minimum rentals $ 848 $ 864 $ 809
Contingent rentals 2 2 1
Total rent expense 850 866 810
Less: sublease income (18)(18)(16)
Net rent expense $ 832 $ 848 $ 794
The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent
rentals) at January 31, 2015, were as follows ($ in millions):
Fiscal Year Capital
Leases Financing
Leases Operating
Leases(1)
2016 $ 22 $ 24 $ 873
2017 11 18 771
2018 7 14 641
2019 4 9 499
2020 2 6 365
Thereafter 15 9 727
Subtotal 61 80 $ 3,876
Less: imputed interest (9)(11)
Present value $ 52 $ 69
(1) Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included,
would increase total operating lease obligations by $1.2 billion at January 31, 2015.
Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $117 million due
under future noncancelable subleases.
9. Benefit Plans
We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from
various investment options, including a fund comprised of our company stock. Participants can contribute up to 50% of their
eligible compensation annually as defined by the plan document, subject to Internal Revenue Service ("IRS") limitations. We
match 100% of the first 3% of participating employees' contributions and 50% of the next 2%. Employer contributions vest
immediately. The total employer contributions were $60 million, $65 million and $62 million in fiscal 2015, 2014 and 2013
(11-month), respectively.
We have a non-qualified, unfunded deferred compensation plan for highly compensated employees and members of our Board
of Directors. Amounts contributed and deferred under our deferred compensation plan are credited or charged with the
performance of investment options offered under the plan and elected by the participants. In the event of bankruptcy, the assets
of the plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the plan was
$44 million and $54 million at January 31, 2015, and February 1, 2014, respectively, and is included in long-term liabilities. We
manage the risk of changes in the fair value of the liability for deferred compensation by electing to match our liability under
the plan with investment vehicles that offset a substantial portion of our exposure. The cash value of the investment vehicles,
which includes funding for future deferrals, was $97 million and $96 million at January 31, 2015, and February 1, 2014,
respectively, and is included in other assets. Both the asset and the liability are carried at fair value.