Albertsons 2015 Annual Report Download - page 77

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75
The $400 of 6.75 percent Senior Notes due June 2021, the $350 of 2022 Notes and the remaining $278 of 2016 Notes contain
operating covenants, including limitations on liens and on sale and leaseback transactions. The Company was in compliance
with all such covenants and provisions for all periods presented.
NOTE 8—LEASES
The Company leases most of its retail stores and certain distribution centers, office facilities and equipment from third parties.
Many of these leases include renewal options and, to a limited extent, include options to purchase. Future minimum lease
payments to be made by the Company for noncancellable operating leases and capital leases as of February 28, 2015 consist of
the following:
Lease Obligations
Fiscal Year
Operating
Leases
Capital
Leases
2016 $ 129 $ 45
2017 119 43
2018 99 41
2019 80 38
2020 60 35
Thereafter 152 130
Total future minimum obligations $ 639 332
Less interest (93)
Present value of net future minimum obligations 239
Less current capital lease obligations (26)
Long-term capital lease obligations $ 213
Total future minimum obligations have not been reduced for future minimum subtenant rentals under certain operating
subleases.
Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following:
2015 2014 2013
Minimum rent $ 148 $ 143 $ 143
Contingent rent 6 5 6
Rent expense 154 148 149
Less subtenant rentals (29)(27)(29)
Total net rent expense $ 125 $ 121 $ 120
The Company leases certain property to third parties under operating, capital and direct financing leases. Under the direct
financing leases, the Company leases buildings to independent retail customers with terms ranging from one to five years.