Banana Republic 2012 Annual Report Download - page 75

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57
The aggregate minimum non-cancelable annual lease payments under leases in effect on February 2, 2013 are
as follows:
($ in millions)
Fiscal Year
2013 $ 1,093
2014 1,069
2015 924
2016 753
2017 584
Thereafter 1,709
Total minimum lease commitments $ 6,132
The total minimum lease commitment amount above does not include minimum sublease rent income of $31 million
receivable in the future under non-cancelable sublease agreements.
Rent expense related to our store premises, corporate facilities, and distribution centers under operating leases is as
follows:
Fiscal Year
($ in millions) 2012 2011 2010
Minimum rent expense $ 1,104 $ 1,072 $ 1,009
Contingent rent expense 123 123 125
Less: Sublease income (4) (8) (5)
Total $ 1,223 $ 1,187 $ 1,129
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 $2 million, $4 million, and $3 million for fiscal 2012,
2011, and 2010, respectively.
We had lease loss reserves of $6 million and $9 million as of February 2, 2013 and January 28, 2012, respectively. Lease
losses were $3 million, $4 million, and $3 million for fiscal 2012, 2011, and 2010, 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 February 2, 2013, we expect our lease payments, net of sublease income, to
result in a total net cash outlay of approximately $13 million for the remaining lease terms.
Note 12. Income Taxes
For financial reporting purposes, components of income before income taxes are as follows:
Fiscal Year
($ in millions) 2012 2011 2010
United States $ 1,692 $ 1,253 $ 1,686
Foreign 169 116 296
Income before income taxes $ 1,861 $ 1,369 $ 1,982
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