Dillard's 2013 Annual Report Download - page 70

F-24
The future minimum rental commitments as of February 1, 2014 for all non-cancelable leases for buildings and
equipment are as follows:
(in thousands of dollars)
Fiscal Year
Operating
Leases
Capital
Leases
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,197 $ 1,428
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,846 1,428
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,096 1,428
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,140 1,428
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,569 1,428
After 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,497 3,231
Total minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 74,345 10,371
Less amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,828)
Present value of net minimum lease payments (of which $784 is currently payable) . . . . . . . . $ 7,543
Renewal options from three to 25 years exist on the majority of leased properties.
At February 1, 2014, the Company is committed to incur costs of approximately $89 million to acquire, complete and
furnish certain stores and equipment.
At February 1, 2014, letters of credit totaling $35.7 million were issued under the Company's $1.0 billion revolving credit
facility.
Various legal proceedings, in the form of lawsuits and claims, which occur in the normal course of business, are pending
against the Company and its subsidiaries. In the opinion of management, disposition of these matters is not expected to
materially affect the Company's financial position, cash flows or results of operations.
14. Asset Impairment and Store Closing Charges
During fiscal 2013, the Company recorded a pretax charge of $5.4 million for asset impairment and store closing costs.
The charge was for the write-down of certain cost method investments.
During fiscal 2012, the Company recorded a pretax charge of $1.6 million for asset impairment and store closing costs.
The charge was for the write-down of a property held for sale and of an operating property, both of which the Company had
contracted to sell.
During fiscal 2011, the Company recorded a pretax charge of $1.2 million for asset impairment and store closing costs.
The charge was for the write-down of a property held for sale.
The following is a summary of the activity in the reserve established for store closing charges:
(in thousands of dollars)
Balance,
Beginning
of Year
Adjustments
and Charges* Cash Payments
Balance,
End of Year
Fiscal 2013
Rent, property taxes and utilities. . . . . . . . . . . . . . . . . . . . . $ 251 $ 188 $ 439 $ —
Fiscal 2012
Rent, property taxes and utilities. . . . . . . . . . . . . . . . . . . . . 738 873 1,360 251
Fiscal 2011
Rent, property taxes and utilities. . . . . . . . . . . . . . . . . . . . . 1,360 1,035 1,657 738
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* included in rentals
Reserve amounts are recorded in trade accounts payable and accrued expenses and other liabilities.