Restoration Hardware 2012 Annual Report Download - page 163

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NOTE 15—COMMITMENTS AND CONTINGENCIES
Leases
The Company leases certain property consisting of retail and outlet stores, corporate offices, distribution
centers and equipment. Leases expire at various dates through 2027. The stores, distribution centers and
corporate office leases generally provide that the Company assumes the maintenance and all or a portion of the
property tax obligations on the leased property. Most store leases also provide for minimum annual rentals, with
provisions for additional rent based on a percentage of sales and for payment of certain expenses.
The aggregate future minimum rental payments under leases in effect as of February 2, 2013, are as follows
(in thousands):
Capital
Leases
Operating
Leases Total
2013 $ 3,070 $ 62,343 $ 65,413
2014 1,414 55,137 56,551
2015 184 47,919 48,103
2016 42 43,497 43,539
2017 — 39,545 39,545
Thereafter — 224,395 224,395
Minimum lease commitments 4,710 $472,836 $477,546
Less—amount representing interest (183)
Present value of capital lease obligations 4,527
Less—current capital lease obligations (2,925)
Long-term capital lease obligations $ 1,602
The current and long-term capital lease obligations are included in other current liabilities and other long-
term obligations, respectively, on the consolidated balance sheets.
Lease payments that depend on factors that are not measurable at the inception of the lease, such as future
sales volume, are contingent rentals and are excluded from minimum lease payments and included in the
determination of total rental expense when it is probable that the expense has been incurred and the amount is
reasonably estimable. Future payments for insurance, real estate taxes and repair and maintenance to which the
Company is obligated are excluded from minimum lease payments. Minimum and contingent rental expense
under operating leases is as follows (in thousands):
Year Ended
February 2,
2013
January 28,
2012
January 29,
2011
Operating leases
Minimum rental expense $52,750 $51,665 $48,801
Contingent rental expense 3,318 1,456 900
Total operating leases $56,068 $53,121 $49,701
Commitments
The Company had no off balance sheet commitments as of February 2, 2013.
107
Form 10-K