Restoration Hardware 2014 Annual Report Download - page 111
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The aggregate future minimum rent payments under leases in effect as of January 31, 2015, are as follows
(in thousands):
Lease agreements accounted for as:
Capital
Leases (1)
Operating
Leases Build-to-Suit (2) Total
2015 $ 1,223 $ 72,274 $ 19,056 $ 92,553
2016 1,118 64,568 23,343 89,029
2017 1,094 57,128 29,596 87,818
2018 1,110 49,424 28,069 78,603
2019 1,133 45,117 28,586 79,143
Thereafter 11,546 293,925 363,120 668,591
Minimum lease commitments 17,224 $582,436 $491,770 $1,091,430
Less—amount representing interest (9,482)
Present value of capital lease obligations 7,742
Less—current capital lease obligations (255)
Non-current capital lease obligations $ 7,487
(1) The current and non-current capital lease obligations are included in other current liabilities and other non-
current obligations, respectively, on the consolidated balance sheets.
(2) Includes approximately $8 million in fiscal 2015 related to the Company’s commitment to purchase real
estate in Canada, the purchase of which is expected to close in June 2015.
Lease payments that depend on factors that are not measurable at the inception of the lease, such as future
sales volume, represent contingent rent expense and are excluded from minimum lease payments and included in
the determination of total rent 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 rent under lease
agreements accounted for as operating leases and lease agreements accounted for as build-to-suit lease
transactions are as follows (in thousands):
Year Ended
January 31,
2015
February 1,
2014
February 2,
2013
Lease agreements accounted for as operating leases
Minimum rent $75,654 $66,686 $52,750
Contingent rent 7,989 6,208 3,318
Total operating leases $83,643 $72,894 $56,068
Lease agreements accounted for as build-to-suit lease transactions (1)
Minimum rent $ 7,375 $ 1,980 $ —
Contingent rent 122 — —
Total build-to-suit lease transactions $ 7,497 $ 1,980 $ —
(1) As described in Note 3—Significant Accounting Policies, the cash payments made under leases accounted
for as build-to-suit lease transactions get allocated to land rent expense and as debt service payments (a
portion to interest expense and a portion to financing obligation). Minimum rent payments recognized as
interest expense within the consolidated statements of operations were $5.3 million and $1.1 million in
fiscal 2014 and fiscal 2013, respectively. The remaining minimum rent payments in fiscal 2014 and
fiscal 2013 are included in cost of goods sold on the consolidated statements of operations. Contingent rent
107