Note 6 - Leases

We lease all of our retail locations and certain equipment under operating leases expiring at various dates through fiscal 2025. Various lease agreements require scheduled rent increases over the initial lease term. Rent expense for such leases is recognized on a straight-line basis over the initial lease term beginning the earlier of the start date of the lease or when we take possession of the property. The difference between rent based upon scheduled monthly payments and rent expense recognized on a straight-line basis is recorded as accrued rent. All incentives received from landlords are recorded as deferred income and amortized over the life of the lease on a straight-line basis as a reduction of rental expense.

Certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. Certain leases also contain escalation clauses for increases in operating costs and taxes.

We did not assign any store operating leases during fiscal 2013. The last two assignments of operating leases covering former store locations, which we assigned to third parties in prior years, expired during fiscal 2013. We have no potential amount of future payments that we could be required to make under any store operating lease assignments at February 1, 2014.

Rental expense for our operating leases consisted of:

(In thousands)	2013		2012		2011

Rentals for real property	$	58,140	$	53,832	$	49,328
Contingent rent		189		189		156
Equipment rentals		83		110		113
Total	$	58,412	$	54,131	$	49,597

Future minimum lease payments at February 1, 2014 were as follows:

(In thousands)	Operating Leases

2014	$	56,132
2015		57,113
2016		55,962
2017		55,637
2018		46,740
Thereafter to 2025		152,326
Total	$	423,910