Dollar Tree 2013 Annual Report Download - page 58

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42
It is possible that state tax reserves will be reduced for audit settlements and statute expirations within the next 12
months. At this point it is not possible to estimate a range associated with the resolution of these audits.
NOTE 4 – COMMITMENTS AND CONTINGENCIES
Operating Lease Commitments
Future minimum lease payments under noncancelable store and distribution center operating leases are as follows:
(in millions)
2014 $ 516.4
2015 476.4
2016 394.2
2017 329.6
2018 206.3
Thereafter 403.4
Total minimum lease payments $ 2,326.3
The above future minimum lease payments include amounts for leases that were signed prior to February 1, 2014 for stores
that were not open as of February 1, 2014.
Minimum rental payments for operating leases do not include contingent rentals that may be paid under certain store leases
based on a percentage of sales in excess of stipulated amounts. Future minimum lease payments have not been reduced by
expected future minimum sublease rentals of $0.6 million under operating leases.
Minimum and Contingent Rentals
Rental expense for store and distribution center operating leases (including payments to related parties) included in the
accompanying consolidated statements of operations are as follows:
Year Ended
February 1, February 2, January 28,
(in millions) 2014 2013 2012
Minimum rentals $ 496.4 $ 455.5 $ 421.8
Contingent rentals 1.8 2.0 1.8
Technology Assets
The Company has commitments totaling approximately $2.4 million to purchase primarily store technology assets for its
stores during 2014.
Telecommunication Contracts
The Company has contracted for telecommunication services with agreements expiring in 2017. The total amount of these
commitments is approximately $19.3 million.
Letters of Credit
The Company is a party to three Letter of Credit Reimbursement and Security Agreements providing $130.0 million,
$100.0 million, and $20.0 million, respectively for letters of credit. Letters of credit under these agreements are generally
issued for the routine purchase of imported merchandise and approximately $144.1 million was committed to these letters of
credit at February 1, 2014. As discussed in Note 5, the Company also has $150.0 million of available letters of credit included
in the $750.0 million Unsecured Credit Agreement; however, as of February 1, 2014, there were no letters of credit committed
under this agreement.
The Company also has approximately $12.9 million in stand-by letters of credit that serve as collateral for its large-
deductible insurance programs and expire in fiscal 2014. The Company's Demand Revenue Bonds are also supported by a
$13.0 million letter of credit that is renewable annually.