Macy's 2015 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2015 Macy's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-18
4. Properties and Leases
January 30,
2016
January 31,
2015
(millions)
Land ................................................................................................................................... $ 1,629 $ 1,664
Buildings on owned land ................................................................................................... 4,690 5,049
Buildings on leased land and leasehold improvements ..................................................... 1,672 1,819
Fixtures and equipment...................................................................................................... 4,910 4,828
Leased properties under capitalized leases ........................................................................ 34 34
12,935 13,394
Less accumulated depreciation and amortization ....................................................... 5,319 5,594
$ 7,616 $ 7,800
In connection with various shopping center agreements, the Company is obligated to operate certain stores within the
centers for periods of up to twenty years. Some of these agreements require that the stores be operated under a particular
name.
The Company leases a portion of the real estate and personal property used in its operations. Most leases require the
Company to pay real estate taxes, maintenance and other executory costs; some also require additional payments based on
percentages of sales and some contain purchase options. Certain of the Company’s real estate leases have terms that extend
for significant numbers of years and provide for rental rates that increase or decrease over time. In addition, certain of these
leases contain covenants that restrict the ability of the tenant (typically a subsidiary of the Company) to take specified
actions (including the payment of dividends or other amounts on account of its capital stock) unless the tenant satisfies
certain financial tests.
Minimum rental commitments (excluding executory costs) at January 30, 2016, for noncancellable leases are:
Capitalized
Leases
Operating
Leases Total
(millions)
Fiscal year
2016.......................................................................................................... $ 3 $ 306 $ 309
2017.......................................................................................................... 3 298 301
2018.......................................................................................................... 3 281 284
2019.......................................................................................................... 3 262 265
2020.......................................................................................................... 3 232 235
After 2020 ................................................................................................ 40 2,496 2,536
Total minimum lease payments................................................................ 55 $ 3,875 $ 3,930
Less amount representing interest ............................................................ 25
Present value of net minimum capitalized lease payments ...................... $ 30
Capitalized leases are included in the Consolidated Balance Sheets as property and equipment while the related
obligation is included in short-term ($1 million) and long-term ($29 million) debt. Amortization of assets subject to
capitalized leases is included in depreciation and amortization expense. Total minimum lease payments shown above have
not been reduced by minimum sublease rentals of $7 million on operating leases.