O'Reilly Auto Parts 2014 Annual Report Download - page 62

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FORM 10-K
55
NOTE 6 – LEASING
The following table identifies the future minimum lease payments under all of the Company's operating and capital leases for each of
the next five years and in the aggregate as of December 31, 2014 (in thousands):
Operating Leases Capital Leases
Related Parties
Non-Related
Parties
Non-Related
Parties Total
2015 $ 4,621 $ 247,477 $ 25 $ 252,123
2016 4,659 234,267 — 238,926
2017 4,526 216,739 — 221,265
2018 4,318 191,781 — 196,099
2019 2,756 169,271 — 172,027
Thereafter 8,917 932,179 — 941,096
Total $ 29,797 $ 1,991,714 $ 25 $ 2,021,536
Capital lease agreements:
The Company assumed certain building capital leases in the acquisition of CSK. The only remaining building capital lease agreement
will expire on April 30, 2015. The present value of future minimum lease payments under this building capital lease at December 31,
2014 and 2013, was less than $0.1 million and was classified as long-term debt in the accompanying Consolidated Balance Sheets. The
Company did not acquire any additional buildings under capital leases during the years ended December 31, 2014 or 2013.
Operating lease commitments:
The Company leases certain office space, retail stores, property and equipment under long-term, non-cancelable operating leases. Most
of these leases include renewal options and some include options to purchase, provisions for percentage rent based on sales and/or
incremental step increase provisions.
The future minimum lease payments under the Company's operating leases, in the table above, do not include potential amounts for
percentage rent or other operating lease related costs and have not been reduced by expected future minimum sublease income. Expected
future minimum sublease income under non-cancelable subleases is approximately $15.3 million at December 31, 2014.
The following table summarizes the net rent expense amounts for the years ended December 31, 2014, 2013 and 2012:
For the Year Ended
December 31,
2014 2013 2012
Minimum operating lease expense $ 254,565 $ 247,039 $ 234,113
Contingent rents 759 701 744
Other lease related occupancy costs 11,688 11,257 10,043
Total rent expense 267,012 258,997 244,900
Less: sublease income 3,984 4,105 4,031
Net rent expense $ 263,028 $ 254,892 $ 240,869
See Note 12 for further information on the Company's related party operating leases.