SEARS HOLDINGS CORP | 2013 | FY | 3


LEASES
We lease certain stores, office facilities, warehouses, computers and transportation equipment.
Operating and capital lease obligations are based upon contractual minimum rents and, for certain stores, amounts in excess of these minimum rents are payable based upon specified percentages of sales. Contingent rent is accrued over the lease term, provided that the achievement of the specified sales level that triggers the contingent rental is probable. Certain leases include renewal or purchase options.
Rental expense for operating leases was as follows: 
millions
 
2013
 
2012
 
2011
Minimum rentals
 
$
762

 
$
824

 
$
837

Percentage rentals
 
15

 
17

 
19

Less-Sublease rentals
 
(56
)
 
(47
)
 
(30
)
Total
 
$
721

 
$
794

 
$
826


Minimum lease obligations, excluding taxes, insurance and other expenses payable directly by us, for leases in effect at February 1, 2014, were as follows: 
 
 
Minimum Lease Commitments 
millions
 
Capital 
 
Operating 
2014
 
$
102

 
$
684

2015
 
90

 
605

2016
 
73

 
499

2017
 
51

 
383

2018
 
32

 
289

Later years
 
131

 
1,314

Total minimum lease payments(1)
 
479

 
3,774

Less-minimum sublease income
 
 

 
(128
)
Net minimum lease payments
 
 

 
$
3,646

Less:
 
 

 
 

Estimated executory costs
 
(41
)
 
 

Interest at a weighted average rate of 6.4%
 
(92
)
 
 

Capital lease obligations
 
346

 
 

Less current portion of capital lease obligations
 
(70
)
 
 

Long-term capital lease obligations
 
$
276

 
 

_____________
(1) 
Sears Canada: Total operating minimum lease payments of $379 million.

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