DSW 2009 Annual Report Download - page 59

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zero. As of January 30, 2010, 129,705 director stock units had been issued and no director stock units had been
settled.
4. LEASES
The Company leases stores, distribution and fulfillment centers and office facilities under various arrange-
ments with related and unrelated parties. Such leases expire through 2025 and in most cases provide for renewal
options. Generally, the Company is required to pay base rent, real estate taxes, maintenance, insurance and
contingent rentals based on sales in excess of specified levels. As of January 30, 2010 and January 31, 2009, the
Company had no capital leases.
As of January 30, 2010, the Company leased or had other agreements with entities affiliated with SSC for 19
store locations, two office facilities, a trailer parking lot, one fulfillment center and one distribution center for a total
annual minimum rent of $10.9 million and additional contingent rents based on aggregate sales in excess of
specified sales for the store locations. Under supply agreements, the Company pays contingent rents based on sales
for the leased departments it operates.
The following table presents future minimum lease payments required under the aforementioned leases,
exclusive of real estate taxes, insurance and maintenance costs, at January 30, 2010:
Fiscal Years Ended Total
Unrelated
Party
Related
Party
Operating Leases
(In thousands)
2010 ............................................ $129,729 $117,419 $ 12,310
2011 ............................................ 124,819 112,083 12,736
2012 ............................................ 115,929 102,811 13,118
2013 ............................................ 108,432 95,925 12,507
2014 ............................................ 101,639 89,164 12,475
Future years ....................................... 294,301 232,350 61,951
Total minimum lease payments ......................... $874,849 $749,752 $125,097
The following table presents the composition of rental expense for the periods presented:
January 30,
2010
January 31,
2009
February 2,
2008
Fiscal Years Ended
(In thousands)
Minimum rentals:
Unrelated parties................................ $110,545 $104,516 $ 93,839
Related parties . ................................ 10,887 10,824 10,561
Contingent rentals:
Unrelated parties................................ 31,871 28,261 25,391
Related parties . ................................ 11,967 12,467
Total .......................................... $153,303 $155,568 $142,258
5. INVESTMENTS
The Company determines the balance sheet classification of its investments at the time of purchase and
evaluates the classification at each balance sheet date. If the Company has the intent and ability to hold the
F-15
DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)