Note L. Commitments

TJX is committed under long-term leases related to its continuing operations for the rental of real estate and fixtures and equipment. Most of TJX’s leases are store operating leases with ten-year terms and options to extend for one or more five-year periods in the U.S. and Canada and ten to fifteen year terms with five or ten-year kick-out options in Europe. Many of the Company’s leases contain escalation clauses and some contain early termination penalties. In addition, TJX is generally required to pay insurance, real estate taxes and other operating expenses including, in some cases, rentals based on a percentage of sales. These expenses in the aggregate were approximately one-third of the total minimum rent in fiscal 2013, fiscal 2012 and fiscal 2011 and are not included in the table below.

The following is a schedule of future minimum lease payments for continuing operations as of February 2, 2013:


In thousands	Operating Leases
Fiscal Year
2014	$	1,185,379
2015		1,104,693
2016		975,405
2017		819,532
2018		667,721
Later years		1,966,484
Total future minimum lease payments	$	6,719,214

Rental expense under operating leases for continuing operations amounted to $1,171.6 million for fiscal 2013, $1,086.0 million for fiscal 2012 and $1,031.4 million for fiscal 2011. Rental expense includes contingent rent and is reported net of sublease income. Contingent rent paid was $15.0 million in fiscal 2013, $12.9 million in fiscal 2012 and $12.0 million in fiscal 2011. Sublease income was $0.9 million in fiscal 2013, $1.3 million in fiscal 2012 and $1.2 million in fiscal 2011. The total net present value of TJX’s minimum operating lease obligations approximated $5,992.8 million as of February 2, 2013.

TJX had outstanding letters of credit totaling $48.5 million as of February 2, 2013 and $36.5 million as of January 28, 2012. Letters of credit are issued by TJX primarily for the purchase of inventory.