NOTE 14: Leases
The Company leases facilities and land for certain facilities under agreements with original terms generally of 20 years. The leases generally contain provisions for four to six renewal options of five years each. Some lease agreements also provide for contingent rentals based on sales performance in excess of specified minimums or on changes in the consumer price index. Contingent rentals were not significant for any of the periods presented. The Company subleases certain properties that are not used in its operations. Sublease income was not significant for any of the periods presented.
The future minimum rental payments required under operating leases and capitalized lease obligations having initial or remaining non-cancelable lease terms in excess of one year are summarized as follows:
|
| | | | | | | | | | | |
(In millions)
Fiscal Year | Operating
Leases |
| | Capitalized
Lease
Obligations |
| | Total |
|
2014 | $ | 447 |
| | $ | 88 |
| | $ | 535 |
|
2015 | 445 |
| | 79 |
| | 524 |
|
2016 | 442 |
| | 68 |
| | 510 |
|
2017 | 432 |
| | 56 |
| | 488 |
|
2018 | 411 |
| | 52 |
| | 463 |
|
Later years | 3,411 |
| | 443 |
| | 3,854 |
|
Total minimum lease payments | $ | 5,588 |
| | $ | 786 |
| | $ | 6,374 |
|
Less amount representing interest | | | (351 | ) | | |
Present value of minimum lease payments | | | 435 |
| | |
Less current maturities | | | (47 | ) | | |
Present value of minimum lease payments, less current maturities | | | $ | 388 |
| | |
Rental expenses under operating leases were $421 million, $409 million and $410 million in 2013, 2012 and 2011, respectively, and were recognized in SG&A expense. Excluded from these amounts are rental expenses associated with closed locations which were recognized as exit costs in the period of closure.
