O'Reilly Auto Parts 2015 Annual Report Download - page 65

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FORM 10-K
NOTE 6 – LEASING
The following table identifies the future minimum lease payments under all of the Company's operating leases for each of the next five
years and in the aggregate as of December 31, 2015 (in thousands):
December 31, 2015
Related Parties Non-Related Parties Total
2016 $ 4,659 $ 255,156 $ 259,815
2017 4,527 246,114 250,641
2018 4,318 228,799 233,117
2019 2,823 207,827 210,650
2020 2,039 185,969 188,008
Thereafter 7,152 983,141 990,293
Total $ 25,518 $ 2,107,006 $ 2,132,524
See Note 11 for further information concerning the Company's related party operating leases.
Capital lease agreements:
The Company assumed certain building capital leases in the acquisition of CSK. The only remaining building capital lease agreement
expired on April 30, 2015. The present value of future minimum lease payments under this building capital lease at December 31, 2014,
was less than $0.1 million and was classified as "Current portion of long-term debt" in the accompanying Consolidated Balance Sheets.
The Company did not acquire any additional buildings under capital leases during the years ended December 31, 2015 or 2014.
Operating lease commitments:
The Company leases certain office space, retail stores, property and equipment under long-term, non-cancelable operating leases. Most
of these leases include renewal options and some include options to purchase, provisions for percentage rent based on sales and/or
incremental step increase provisions.
The future minimum lease payments under the Company's operating leases, in the table above, do not include potential amounts for
percentage rent or other operating lease related costs and have not been reduced by expected future minimum sublease income. Expected
future minimum sublease income under non-cancelable subleases is approximately $18.8 million at December 31, 2015.
The following table summarizes the net rent expense amounts for the years ended December 31, 2015, 2014 and 2013 (in thousands):
For the Year Ended
December 31,
2015 2014 2013
Minimum operating lease expense $ 263,479 $ 254,565 $ 247,039
Contingent rents 947 759 701
Other lease related occupancy costs 12,852 11,688 11,257
Total rent expense 277,278 267,012 258,997
Less: sublease income 4,019 3,984 4,105
Net rent expense $ 273,259 $ 263,028 $ 254,892
NOTE 7 – WARRANTIES
The Company's product warranty liabilities are included in "Other current liabilities" on the accompanying Consolidated Balance Sheets
as of December 31, 2015 and 2014. The following table identifies the changes in the Company's aggregate product warranty liabilities
for the years ended December 31, 2015 and 2014 (in thousands):
2015 2014
Warranty liabilities, balance at January 1, $ 34,226 $ 33,386
Warranty claims (61,819)(52,297)
Warranty accruals 62,816 53,137
Warranty liabilities, balance at December 31, $ 35,223 $ 34,226