NOTE 6. LEASES

We have entered into capital leases for certain property and transportation equipment. At January 31, 2015, total capital lease obligations were $3.5 million, of which $0.4 million was classified as a short-term liability and included in capital lease obligations and $3.1 million was classified as a long-term liability and included in capital lease obligations in our consolidated balance sheet. At February 1, 2014, total capital lease obligations were $3.2 million, of which $0.3 million was classified as a short-term liability and included in capital lease obligations and $2.9 million was classified as a long-term liability and included in capital lease obligations in our consolidated balance sheet. The cost basis of total assets under capital leases at January 31, 2015 and February 1, 2014 was $4.3 million and $3.7 million, respectively, with accumulated amortization at January 31, 2015 and February 1, 2014 of $1.1 million and $0.8 million, respectively. Amortization expense related to assets under capital leases was $0.5 million, $0.3 million and $0.2 million in Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively.

We lease the majority of our retail sporting goods stores under operating leases. The leases typically provide for terms of five to ten years with options to extend at our discretion. Many of our leases contain scheduled increases in annual rent payments and the majority of our leases also require us to pay maintenance, insurance and real estate taxes. Additionally, many of the lease agreements contain tenant improvement allowances, rent holidays and/or rent escalation clauses (contingent rentals) based on net sales for the location. For purposes of recognizing incentives and minimum rental expenses on a straight-line basis over the terms of the leases, we use the date of initial possession to begin amortization, which is generally when we enter the space and begin to make improvements in preparation of our intended use.

Most of our retail store leases contain provisions that allow for early termination of the lease if certain pre-determined annual sales levels are not met. Generally, these provisions allow the lease to be terminated between the third and fifth year of the lease. Should the lease be terminated under these provisions, in some cases, the unamortized portion of any landlord allowances related to that property would be payable to the landlord.

We also lease certain office equipment and transportation equipment under operating leases having initial terms of more than one year.

During Fiscal 2015, we increased our lease commitments by a net of 61 retail stores, each having initial lease termination dates between January 2019 and May 2025 as well as various office and transportation equipment. At January 31, 2015, the future minimum lease payments under capital leases and the present value of such payments, and the future minimum lease payments under our operating leases, excluding maintenance, insurance and real estate taxes, including the net 61 lease commitments added during Fiscal 2015, were as follows (in thousands):

	Capital		Operating		Total
Fiscal 2016	$	726	$	51,414	$	52,140
Fiscal 2017		735		43,329		44,064
Fiscal 2018		735		34,578		35,313
Fiscal 2019		730		26,462		27,192
Fiscal 2020		703		18,251		18,954
Thereafter		1,288		32,670		33,958
Total minimum lease payments		4,917		206,704		211,621
Less amount representing interest		1,452		-		1,452
Present value of total minimum lease payments	$	3,465	$	206,704	$	210,169

Rental expense for all operating leases consisted of the following (in thousands):

	Fiscal Year Ended
	January 31, 2015			February 1, 2014			February 2, 2013
Minimum rentals		$	49,323		$	44,984		$	40,075
Contingent rentals			4,647			5,280			6,331
		$	53,970		$	50,264		$	46,406