Best Buy 2014 Annual Report Download - page 94

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89
9. Leases
The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in
fiscal 2014, 2013 (11-month) and 2012 ($ in millions):
12-Month 11-Month 12-Month
2014 2013 2012
Minimum rentals $ 951 $ 890 $ 980
Contingent rentals 2 1 2
Total rent expense 953 891 982
Less: sublease income (18)(16)(18)
Net rent expense $ 935 $ 875 $ 964
The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent
rentals) at February 1, 2014, were as follows ($ in millions):
Fiscal Year Capital
Leases Financing
Leases Operating
Leases(1)
2015 $ 26 $ 27 $ 1,027
2016 18 25 931
2017 8 19 807
2018 3 15 656
2019 2 9 496
Thereafter 17 17 1,116
Subtotal 74 112 $ 5,033
Less: imputed interest (11)(17)
Present value $ 63 $ 95
(1) Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included,
would increase total operating lease obligations by $1.5 billion at February 1, 2014.
Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $160 million due
under future noncancelable subleases.
10. Benefit Plans
We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from
various investment options including a fund comprised of our company stock. Participants can contribute up to 50% of their
eligible compensation annually as defined by the plan document, subject to Internal Revenue Service ("IRS") limitations. We
match 100% of the first 3% of participating employees' contributions and 50% of the next 2%. Employer contributions vest
immediately. The total employer contributions were $65 million, $62 million and $69 million in fiscal 2014, 2013 (11-month)
and 2012, respectively.
We have a non-qualified, unfunded deferred compensation plan for highly compensated employees and members of our Board
of Directors. Amounts contributed and deferred under our deferred compensation plan are credited or charged with the
performance of investment options offered under the plan and elected by the participants. In the event of bankruptcy, the assets
of the plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the plan was
$54 million and $58 million at February 1, 2014, and February 2, 2013, respectively, and is included in long-term liabilities. We
manage the risk of changes in the fair value of the liability for deferred compensation by electing to match our liability under
the plan with investment vehicles that offset a substantial portion of our exposure. The cash value of the investment vehicles,
which includes funding for future deferrals, was $96 million and $88 million at February 1, 2014, and February 2, 2013,
respectively, and is included in other assets. Both the asset and the liability are carried at fair value.