Family Dollar 2013 Annual Report Download - page 63

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certain incentive compensation. Expenses under the profit-sharing plan were $9.4 million in fiscal 2013,
$12.3 million in fiscal 2012 and $17.8 million in fiscal 2011.
Compensation deferral plans
The Company has a voluntary compensation deferral plan, under Section 401(k) of the Internal Revenue Code,
available to eligible employees. At the discretion of the Board of Directors, the Company makes contributions to
the plan which are allocated to participants, and in which they become vested, in accordance with formulas and
schedules defined by the plan. Company expenses for contributions to the plan were $6.2 million in fiscal 2013,
$3.2 million in fiscal 2012 and $4.0 million in fiscal 2011, and are included in Selling General and
Administrative expenses on the Consolidated Statements of Income.
The Company has a deferred compensation plan to provide certain key management employees the ability to
defer a portion of their base compensation and bonuses. The plan is an unfunded nonqualified plan. The deferred
amounts and earnings thereon are payable to participants, or designated beneficiaries, at either specified future
dates, or upon separation from service or death. The Company does not make contributions to this plan or
guarantee earnings.
12. Commitments and Contingencies:
Operating leases and other contractual obligations
The majority of the rental expense incurred by the Company relates to its stores and the majority of its stores are
leased under agreements that generally have an initial term between five and fifteen years and provide for fixed
rentals. Additionally, most of the Company’s leases require additional payments based upon a percentage of
sales, property taxes, insurance premiums, or common area maintenance charges. Rental expenses on all
operating leases, both cancelable and non-cancelable, for fiscal 2013, fiscal 2012 and fiscal 2011 were as
follows:
(in thousands) August 31, 2013 August 25, 2012 August 27, 2011
Minimum rentals, net of minor sublease
rentals(1) ................................ $555,107 $481,871 $429,942
Contingent rentals .......................... 9,057 8,468 7,862
$564,164 $490,339 $437,804
(1) Minimum rentals, net of minor sublease rentals have increased in fiscal 2013 primarily as a result of
the new stores opened during fiscal 2013 and new leases as a result of stores sold under sale-leaseback
transactions.
Aggregate minimum annual rentals under operating leases as of August 31, 2013, are as follows:
(in thousands)
Minimum
Rentals
Fiscal 2014 ..................................................... $ 515,254
Fiscal 2015 ..................................................... 474,601
Fiscal 2016 ..................................................... 426,788
Fiscal 2017 ..................................................... 381,196
Fiscal 2018 ..................................................... 328,527
Thereafter ...................................................... 1,434,770
Total minimum rentals ........................................ $3,561,136
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