OBLIGATIONS UNDER CAPITAL LEASES

12 Months Ended

Dec. 31, 2013

OBLIGATIONS UNDER CAPITAL LEASES [Abstract]

Obligations under capital leases consist of the following:

December 31,	2013		2012
(In millions)
Warehouses, office facilities and equipment	$	21.3	$	23.4
Less: current portion		2.2		2.1
Obligations under capital leases - noncurrent	$	19.1	$	21.3

We lease an office facility in Bristol, Pennsylvania under a 20-year net lease that runs until July 2018 and requires minimum annual rent payments of approximately $1.2 million. The building was capitalized at $12.2 million, which approximated the present value of the minimum lease payments.

In 2003, we entered into a sale-leaseback agreement for our Virginia warehouse facility. This transaction resulted in a net gain of $7.5 million that has been deferred and is being amortized over the lease term, which runs until March 2023 and requires minimum annual rent payments of $2.4 million. The building was capitalized at $25.6 million, which approximated the present value of the minimum lease payments.

The following is a schedule by year of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments as of December 31, 2013:

Year Ending December 31,
(In millions)
2014	$	3.7
2015		3.7
2016		3.7
2017		3.7
2018		3.2
Later years		10.4
Total minimum lease payments		28.4
Less: amount representing interest		7.1
Present value of net minimum lease payments	$	21.3