DSW 2010 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2010 DSW annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

of stock units. Stock units granted to directors vest immediately and are settled upon the director terminating service
from the board. Stock units granted to directors which are not subject to forfeiture are considered to be outstanding
for the purposes of computing basic earnings per share. The exercise price of the director stock units is zero. As of
January 29, 2011, 161,267 director stock units had been issued and no director stock units had been settled.
4. LEASES
The Company leases stores, distribution and fulfillment centers and office facilities under various arrange-
ments with related and unrelated parties. Such leases expire through 2027 and in most cases provide for renewal
options. Generally, the Company is required to pay base rent, real estate taxes, maintenance, insurance and
contingent rentals based on sales in excess of specified levels. As of January 29, 2011 and January 30, 2010, the
Company had no capital leases.
As of January 29, 2011, the Company leased or had other agreements with entities affiliated with SSC for 21
store locations, one office facility, a trailer parking lot, one fulfillment center and one distribution center for a total
annual minimum rent of $11.5 million and additional contingent rents based on aggregate sales in excess of
specified sales for the store locations. Under supply agreements, the Company pays contingent rents based on sales
for the leased departments it operates.
The following table presents future minimum lease payments required under the aforementioned leases,
exclusive of real estate taxes, insurance and maintenance costs, as of January 29, 2011:
Fiscal Years Total
Unrelated
Party
Related
Party
Operating Leases
(In thousands)
2011 ............................................ $132,827 $119,434 $ 13,393
2012 ............................................ 128,752 114,614 14,138
2013 ............................................ 122,218 108,103 14,115
2014 ............................................ 116,267 102,154 14,113
2015 ............................................ 102,033 87,983 14,050
Future years ....................................... 297,430 239,065 58,365
Total minimum lease payments ......................... $899,527 $771,353 $128,174
The following table presents the composition of rental expense for the periods presented:
January 29,
2011
January 30,
2010
January 31,
2009
Fiscal Years Ended
(In thousands)
Minimum rentals:
Unrelated parties................................ $108,961 $110,545 $104,516
Related parties . ................................ 11,548 10,887 10,824
Contingent rentals:
Unrelated parties................................ 31,539 31,871 28,261
Related parties . ................................ 11,967
Total .......................................... $152,048 $153,303 $155,568
F-14
DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)