Commitments Under Long-Term Leases

12 Months Ended

Jan. 30, 2016

Operating Leases

The Company leases its office space and all of its retail store locations, certain distribution centers and transportation equipment under various noncancelable operating leases. The leases have varying terms and expire at various dates through 2030. The store leases in the United States, Puerto Rico and Canada typically have initial terms of approximately 10 years. The stores leases in the United Kingdom, the Republic of Ireland and Germany typically have initial terms of between 10 and 20 years. Generally, most of the leases require the Company to pay taxes, insurance, maintenance costs and contingent rentals based on sales. Approximately 2% of the Company’s leases contain renewal options.

Rental expense under operating leases of continuing operations was:



In thousands	2016			2015			2014
Minimum rentals	$	255,083		$	250,077		$	227,880
Contingent rentals	11,044			9,217			9,667
Sublease rentals	(825		)	(852		)	(663		)
Total Rental Expense	$	265,302		$	258,442		$	236,884

Minimum rental commitments payable in future years are:



Fiscal Years	In thousands
2017	$	238,660
2018	209,050
2019	178,094
2020	156,260
2021	139,402
Later years	376,436
Total Minimum Rental Commitments	$	1,297,902

For leases that contain predetermined fixed escalations of the minimum rentals, the related rental expense is recognized on a straight-line basis and the cumulative expense recognized on the straight-line basis in excess of the cumulative payments is included in deferred rent and other long-term liabilities on the Consolidated Balance Sheets. The Company occasionally receives reimbursements from landlords to be used towards construction of the store the Company intends to lease. Leasehold improvements are recorded at their gross costs including items reimbursed by landlords. The

Note 7

Commitments Under Long-Term Leases, Continued

reimbursements are recorded as deferred rent and amortized as a reduction of rent expense over the initial lease term. Tenant allowances of $25.4 million and $23.5 million for Fiscal 2016 and 2015, respectively, and deferred rent of $48.0 million and $45.0 million for Fiscal 2016 and 2015, respectively, are included in deferred rent and other long-term liabilities on the Consolidated Balance Sheets.