Kroger 2011 Annual Report Download - page 102

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A-47
NO T E S T O CO N S O L I D A T E D FI N A N C I A L ST A T E M E N T S , CO N T I N U E D
Cash and Temporary Cash Investments, Store Deposits In-Transit, Receivables, Prepaid and Other
Current Assets, Accounts Payable, Accrued Salaries and Wages and Other Current Liabilities
The carrying amounts of these items approximated fair value.
Long-term Investments
The fair values of these investments were estimated based on quoted market prices for those or similar
investments, or estimated cash flows, if appropriate. At January 28, 2012 and January 29, 2011, the carrying
and fair value of long-term investments for which fair value is determinable were $50 and $69, respectively.
8. LE A S E S A N D LE A S E -FI N A N C E D TR A N S A C T I O N S
While the Company’s current strategy emphasizes ownership of store real estate, the Company operates
primarily in leased facilities. Lease terms generally range from 10 to 20 years with options to renew for
varying terms. Terms of certain leases include escalation clauses, percentage rent based on sales or payment
of executory costs such as property taxes, utilities or insurance and maintenance. Rent expense for leases
with escalation clauses or other lease concessions are accounted for on a straight-line basis beginning with
the earlier of the lease commencement date or the date the Company takes possession. Portions of certain
properties are subleased to others for periods generally ranging from one to 20 years.
Rent expense (under operating leases) consists of:
2011 2010 2009
Minimum rentals ........................................ $ 715 $ 721 $ 720
Contingent payments..................................... 13 11 11
Tenant income .......................................... (109) (109) (111)
Total rent expense .................................... $ 619 $ 623 $ 620
Minimum annual rentals and payments under capital leases and lease-financed transactions for the five
years subsequent to 2011 and in the aggregate are:
Capital
Leases
Operating
Leases
Lease-
Financed
Transactions
2012 ...................................................... $ 59 $ 725 $ 5
2013 ...................................................... 49 683 6
2014 ...................................................... 45 630 6
2015 ...................................................... 40 563 7
2016 ...................................................... 36 497 7
Thereafter ................................................. 202 2,197 95
431 $5,295 $126
Less estimated executory costs included in capital leases ............ —
Net minimum lease payments under capital leases ................. 431
Less amount representing interest .............................. (159)
Present value of net minimum lease payments under capital leases .... $ 272
Total future minimum rentals under noncancellable subleases at January 28, 2012, were $258.