Banana Republic 2011 Annual Report Download - page 79

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The aggregate minimum non-cancelable annual lease payments under leases in effect on January 28, 2012 are
as follows:
($ in millions)
Fiscal Year
2012 ............................................................................................ $1,025
2013 ............................................................................................ 917
2014 ............................................................................................ 801
2015 ............................................................................................ 677
2016 ............................................................................................ 530
Thereafter ....................................................................................... 1,609
Totalminimumleasecommitments ............................................................... $5,559
The total minimum lease commitment amount above does not include minimum sublease rent income of
$46 million receivable in the future under non-cancelable sublease agreements.
Rent expense related to our store premises, corporate facilities, and distribution centers under operating leases is
as follows:
Fiscal Year
($ in millions) 2011 2010 2009
Minimumrentexpense ......................................................... $1,072 $1,009 $ 973
Contingentrentexpense ........................................................ 123 125 135
Less:Subleaseincome ........................................................... (8) (5) (2)
Total .......................................................................... $1,187 $1,129 $1,106
In addition to rent expense related to our store premises, corporate facilities, and distribution centers as noted
above, we had rent expense related to equipment under operating leases of $4 million, $3 million, and $4 million
for fiscal 2011, 2010, and 2009, respectively.
We had lease loss reserves of $9 million and $10 million as of January 28, 2012 and January 29, 2011, respectively.
Lease losses were $4 million, $3 million, and $6 million for fiscal 2011, 2010, and 2009, respectively. Remaining lease
payments associated with our lease loss reserve are expected to be paid over the various remaining lease terms
through 2021. Based on our current assumptions as of January 28, 2012, we expect our lease payments, net of
sublease income, to result in a total net cash outlay of approximately $15 million for the remaining lease terms.
Note 11. Income Taxes
For financial reporting purposes, components of income before income taxes are as follows:
Fiscal Year
($ in millions) 2011 2010 2009
United States ................................................................... $1,253 $1,686 $1,511
Foreign ........................................................................ 116 296 305
Incomebeforeincometaxes ..................................................... $1,369 $1,982 $1,816
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