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Lease Obligations
 12 Months Ended
Jan. 03, 2015
Leases [Abstract]  
Lease Obligations
Lease Obligations
At year-end 2014, Safeway leased approximately 53% of its stores. Most leases have renewal options, typically with increased rental rates during the option period. Certain of these leases contain options to purchase the property at amounts that approximate fair market value.
As of year-end 2014, future minimum rental payments applicable to non-cancelable capital and operating leases with remaining terms in excess of one year were as follows (in millions):
 
Capital
leases
 
Operating
leases
2015
$
128.9

 
$
450.7

2016
118.0

 
424.8

2017
98.5

 
380.3

2018
70.1

 
328.7

2019
59.7

 
279.4

Thereafter
259.7

 
1,878.5

Total minimum lease payments
734.9

 
$
3,742.4

Less amounts representing interest
(211.1
)
 
 
Present value of net minimum lease payments
523.8

 
 
Less current obligations
(94.7
)
 
 
Long-term obligations
$
429.1

 
 

Future minimum lease payments under non-cancelable capital and operating lease agreements have not been reduced by future minimum sublease rental income of $145.9 million.
Amortization expense for property under capital leases was $73.7 million in 2014, $46.1 million in 2013 and $26.3 million in 2012. Accumulated amortization of property under capital leases was $324.2 million at year-end 2014 and $251.9 million at year-end 2013.
The following schedule shows the composition of total rental expense for all operating leases (in millions):
 
 
2014
2013
2012
Property leases:
 
 
 
Minimum rentals
$
379.1

$
365.5

$
365.7

  Contingent rentals (1)
8.8

7.3

7.7

Less rentals from subleases
(11.5
)
(11.1
)
(9.4
)
 
376.4

361.7

364.0

Equipment leases
11.8

20.4

20.4

 
$
388.2

$
382.1

$
384.4

 (1) 
In general, contingent rentals are based on individual store sales.