Dollar General 2015 Annual Report Download - page 139

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10-K
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Commitments and contingencies (Continued)
legal right of offset exists, the Company is accounting for the Ardmore Note as a reduction of its
outstanding financing obligation in its consolidated balance sheets.
Future minimum payments as of January 29, 2016 for operating leases are as follows:
(In thousands)
2016 .................................................. $ 866,444
2017 .................................................. 831,367
2018 .................................................. 783,564
2019 .................................................. 720,569
2020 .................................................. 632,998
Thereafter ............................................. 3,394,301
Total minimum payments ................................... $7,229,243
Total minimum payments for capital leases were $5.9 million, with a present value of $4.8 million,
as of January 29, 2016. The gross amount of property and equipment recorded under capital leases and
financing obligations at both January 29, 2016 and January 31, 2015, was $29.8 million. Accumulated
depreciation on property and equipment under capital leases and financing obligations at January 29,
2016 and January 30, 2015, was $12.4 million and $10.6 million, respectively.
Rent expense under all operating leases is as follows:
(In thousands) 2015 2014 2013
Minimum rentals(a) ....................... $849,115 $776,103 $674,849
Contingent rentals ........................ 7,793 9,099 12,058
$856,908 $785,202 $686,907
(a) Excludes amortization of leasehold interests of $0.9 million, $5.8 million and $11.9 million
included in rent expense for the years ended January 29, 2016, January 30, 2015, and
January 31, 2014, respectively.
Legal proceedings
In September 2011, the Chicago Regional Office of the United States Equal Employment
Opportunity Commission (‘‘EEOC’’ or ‘‘Commission’’) notified the Company of a cause finding related
to the Company’s criminal background check policy. The cause finding alleges that the Company’s
criminal background check policy, which excludes from employment individuals with certain criminal
convictions for specified periods, has a disparate impact on African-American candidates and
employees in violation of Title VII of the Civil Rights Act of 1964, as amended (‘‘Title VII’’).
The Company and the EEOC engaged in the statutorily required conciliation process, and despite
the Company’s good faith efforts to resolve the matter, the Commission notified the Company on
July 26, 2012 of its view that conciliation had failed.
On June 11, 2013, the EEOC filed a lawsuit in the United States District Court for the Northern
District of Illinois entitled Equal Opportunity Commission v. Dolgencorp, LLC d/b/a Dollar General in
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