Operating Leases

12 Months Ended

Dec. 31, 2013

Leases, Operating [Abstract]

Operating Leases

Note 9. Operating Leases

We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain store locations with initial terms of one to 60 months. Most store locations have initial lease terms of 36 to 48 months. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Any such terms are recognized as rent expense over the term of the lease. Further, the leases do not contain contingent rent provisions. Leasehold improvements, with a net book value of $1,827 at December 31, 2013, on operating leases are amortized over a 36-month period. We lease certain semi-tractors and pick-ups under operating leases. The semi-tractor leases typically have a 36-month term. The pick-up leases typically have a non-cancelable lease term of approximately one year, with renewal options for up to 72-months. Our average lease term for pick-ups is typically for 28 to 36 months. Future minimum annual rentals for the leased facilities and the leased vehicles are as follows:

	Leased Facilities		Leased Vehicles	Total
2014	$	89,289	20,263	109,552
2015	65,242		10,796	76,038
2016	41,115		4,733	45,848
2017	20,575		—	20,575
2018	8,894		—	8,894
2019 and thereafter	—		—	—
	$	225,115	35,792	260,907

Rent expense under all operating leases was as follows:

	Leased Facilities		Leased Vehicles	Total
2013	$	99,483	32,907	132,390
2012	$	96,540	29,039	125,579
2011	$	95,808	23,866	119,674

Certain operating leases for vehicles contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases is approximately $44,720. We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote, except for a $36 loss on disposal reserve provided at December 31, 2013. Our fleet also contains vehicles we estimate will settle at a gain. Gains on these vehicles will be recognized when we sell or dispose of the vehicle or at the end of the lease term.