NOTE 5 – LEASING

The following table identifies the future minimum lease payments under all of the Company’s operating and capital leases for each of the next five years and in the aggregate as of December 31, 2012 (in thousands):



	Operating Leases				Capital Leases
	Related Parties		Non-Related Parties		Non-Related Parties		Total
2013	$	4,439	$	235,601	$	234	$	240,274
2014		4,487		222,216		77		226,780
2015		4,430		198,700		25		203,155
2016		3,996		174,171		-		178,167
2017		3,300		150,970		-		154,270
Thereafter		11,618		829,172		-		840,790
Total	$	32,270	$	1,810,830	$	336	$	1,843,436

Capital lease agreements:

The Company assumed certain vehicle capital leases in the acquisition of CSK. The remaining vehicle capital lease agreements have contractual terms of nine months, which will expire on October 15, 2013. The present value of the future minimum lease payments under these vehicle capital leases totaled approximately $0.2 million and $0.7 million at December 31, 2012 and 2011, respectively, which were classified as long-term debt in the accompanying consolidated financial statements. The Company did not acquire any additional vehicles under capital leases during the periods ended December 31, 2012 or 2011.

The Company assumed certain building capital leases in the CSK acquisition. The remaining building capital lease agreement will expire on March 31, 2017. The present value of future minimum lease payments under building capital leases totaled approximately $0.2 million and $0.5 million at December 31, 2012 and 2011, respectively, which was classified as long-term debt in the accompanying consolidated financial statements. The Company did not acquire any additional buildings under capital leases during the periods ended December 31, 2012 or 2011.

Operating lease commitments:

The Company leases certain office space, retail stores, property and equipment under long-term, non-cancelable operating leases. Most of these leases include renewal options and some include options to purchase, provisions for percentage rent based on sales and/or incremental step increase provisions.

The future minimum lease payments under the Company’s operating leases, in the table above, do not include potential amounts for percentage rent or other operating lease related costs and have not been reduced by expected future minimum sublease income. Expected future minimum sublease income under non-cancelable subleases is approximately $13.9 million at December 31, 2012.

The following table summarizes the net rent expense amounts for the years ended December 31, 2012, 2011 and 2010:



	For the Years Ended December 31,
	2012		2011		2010
Minimum operating lease expense	$	234,113	$	226,158	$	221,540
Contingent rents		744		534		903
Other lease related occupancy costs		10,043		8,821		9,352
Total rent expense		244,900		235,513		231,795
Less: sublease income		4,031		4,616		4,916
Net rent expense	$	240,869	$	230,897	$	226,879