Foot Locker 2012 Annual Report Download - page 73

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FOOT LOCKER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. Leases
The Company is obligated under operating leases for almost all of its store properties. Some of the store
leases contain renewal options with varying terms and conditions. Management expects that in the normal
course of business, expiring leases will generally be renewed or, upon making a decision to relocate,
replaced by leases on other premises. Operating lease periods generally range from 5 to 10 years. Certain
leases provide for additional rent payments based on a percentage of store sales. Most of the Company’s
leases require the payment of certain executory costs such as insurance, maintenance, and other costs in
addition to the future minimum lease payments. These costs, including the amortization of lease rights,
totaled $128 million, $130 million, and $131 million in 2012, 2011, and 2010, respectively. Included in the
amounts below, are non-store expenses that totaled $16 million, $17 million, and $15 million in 2012,
2011, and 2010, respectively.
2012 2011 2010
(in millions)
Minimum rent $537 $525 $507
Contingent rent based on sales 24 20 16
Sublease income (1) (1) (1)
$560 $544 $522
Future minimum lease payments under non-cancelable operating leases, net of future non-cancelable
operating sublease payments, are:
(in millions)
2013 $ 513
2014 465
2015 415
2016 353
2017 287
Thereafter 880
Total operating lease commitments $2,913
16. Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss, net of tax, is comprised of the following:
2012 2011 2010
(in millions)
Foreign currency translation adjustments $ 82 $ 63 $ 86
Cash flow hedges 3 (1) 1
Unrecognized pension cost and postretirement benefit (255) (264) (254)
Unrealized loss on available-for-sale security (1) (2) (2)
$(171) $(204) $(169)
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