COMMITMENTS AND GUARANTEES

Commitments

We lease certain sales offices, showrooms, warehouses and equipment under non-cancelable operating leases that expire at various dates through fiscal year 2024. During the normal course of business, we have entered into sale-leaseback arrangements for certain facilities. Accordingly, these leases are accounted for as operating leases and the related gains from the sale of the properties are recorded as deferred gains and are amortized over the lease term. In Q4 2011, we completed the sale and leaseback of a facility in Canada, which generated $24.7 of cash and resulted in a $15.9 pre-tax gain. We recognized $10.6 of this gain as a restructuring item in Q4 2011 and deferred the remaining gain over the five-year lease term associated with the space we are leasing back. In Q3 2011, we completed the sale and leaseback of a facility in Malaysia, which generated $13.0 of cash and resulted in a $3.2 pre-tax gain. We deferred the entire amount of this gain over the six-year lease term associated with the space we are leasing back. Total deferred gains, including the facilities in Malaysia and Canada, are included as a component of Other long-term liabilities, on the Consolidated Balance Sheets and amounted to $14.2 as of February 22, 2013 and $18.1 as of February 24, 2012.

Rent expense under all non-cancelable operating leases, net of sublease rental income and excluding lease impairment charges recorded as restructuring costs, was $53.0, $50.0 and $41.4 for 2013, 2012 and 2011, respectively. Sublease rental income was $5.7, $7.8 and $5.0 for 2013, 2012 and 2011, respectively. Lease impairment charges recorded as restructuring costs were $0.0, $3.0 and $1.2 for 2013, 2012 and 2011, respectively.

Our estimated future minimum annual rental commitments and sublease rental income under non-cancelable operating leases are as follows:



Year Ending in February	Minimum annual rental commitments		Minimum annual sublease rental income			Minimum annual rental commitments, net
2014	$	47.7	$	(5.0	)	$	42.7
2015	38.0		(4.7		)	33.3
2016	29.7		(4.8		)	24.9
2017	20.1		(4.8		)	15.3
2018	14.8		(3.8		)	11.0
Thereafter	16.6		(2.2		)	14.4
	$	166.9	$	(25.3	)	$	141.6

We have outstanding capital expenditure commitments of $22.2.

Guarantees and Performance Bonds

The maximum amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered from third parties) we could be required to make under guarantees and performance bonds are as follows:



Guarantees and Performance Bonds	February 22, 2013		February 24, 2012
Performance bonds	$	0.1	$	0.1
Guarantees	—		0.3
	$	0.1	$	0.4

We are party to performance bonds for certain installation or construction activities of certain dealers. Under these agreements, we are liable to make financial payments if the installation or construction activities are not completed under their specified guidelines and claims are filed. Projects with performance bonds have completion dates typically around one year. Where we have supplied performance bonds, we have the ability to step in and cure performance failures thereby mitigating our potential losses. No loss has been experienced under these performance bonds, and we had no reserves recorded related to our potential exposure as of February 22, 2013 and February 24, 2012.

We are contingently liable under guarantees to third parties for the benefit of certain dealers in the event of default of a financial obligation. The guarantees generally have terms ranging from one to five years. We had no reserves recorded related to these guarantees as of February 22, 2013 and February 24, 2012.

We occasionally provide guarantees of the performance of certain of our dealers to third parties. These performance guarantees typically relate to dealer services such as delivery and installation of products. In the event a dealer cannot complete these services in a timely manner, we guarantee the completion of these activities. It is not possible to estimate the potential exposure under these types of guarantees because of the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement; however, we have never experienced a material loss as a result of such guarantees and do not believe any potential loss would be material.