The Gap 2013 Annual Report Download - page 86

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62
Employee Stock Purchase Plan
Under our Employee Stock Purchase Plan (“ESPP”), eligible U.S. employees are able to purchase our common
stock at 85 percent of the closing price on the New York Stock Exchange on the last day of the three-month
purchase periods. Accordingly, compensation expense is recognized for an amount equal to the 15 percent
discount. Employees pay for their stock purchases through payroll deductions at a rate equal to any whole
percentage from 1 percent to 15 percent. There were 811,223, 960,930, and 1,357,769 shares issued under the
ESPP in fiscal 2013, 2012, and 2011, respectively. As of February 1, 2014, there were 4,253,737 shares reserved
for future issuances under the ESPP.
Note 12. Leases
We lease most of our store premises and some of our corporate facilities and distribution centers. These
operating leases expire at various dates through 2030. Most store leases have a five-year base period and
include options that allow us to extend the lease term beyond the initial base period, subject to terms agreed upon
at lease inception. Some leases also include early termination options, which can be exercised under specific
conditions.
The aggregate minimum non-cancelable annual lease payments under leases in effect on February 1, 2014 are
as follows:
($ in millions)
Fiscal Year
2014 $ 1,105
2015 1,087
2016 915
2017 738
2018 586
Thereafter 1,716
Total minimum lease commitments $ 6,147
The total minimum lease commitment amount above does not include minimum sublease rent income of $27
million receivable in the future under non-cancelable sublease agreements.
Rent expense related to our store premises, corporate facilities, and distribution centers under operating leases is
as follows:
Fiscal Year
($ in millions) 2013 2012 2011
Minimum rent expense $ 1,162 $ 1,104 $ 1,072
Contingent rent expense 121 123 123
Less: Sublease income (4) (4) (8)
Total $ 1,279 $ 1,223 $ 1,187
There were no material lease loss reserves as of February 1, 2014 and February 2, 2013. Based on our current
assumptions as of February 1, 2014, we do not expect our lease payments associated with our lease loss
reserves, net of sublease income, to be paid over the remaining terms through 2027, to be material.