EFTA Document EFTA01382452

Amendment No. 3 to Form S-1 Table of Contents AB ACQUISITION LLC AND SUBSIDIARIES Notes to Consolidated Financial Statements Note 12—Leases The Company leases certain retail stores, distribution centers, office facilities and equipment from third parties. The typical lease period is 15 to 20 years with renewal options for varying terms and, to a limited extent, options to purchase. Certain leases contain percent rent based on sales, escalation clauses or payment of executory costs, such as property taxes, utilities. insurance and maintenance. Future minimum lease payments to be made by the Company for non-cancelable operating lease and capital lease obligations as of February 28, 2015 consisted of the following (in millions): Lease Obligations Fiscal year Operating Leases 2015 735.7 2016 688.7 2017 620.1 2018 538.9 2019 455.1 Thereafter 2,858.2 Total future minimum obligations 5,896.7 Less interest Present value of net future minimum lease obligations Less current portion Long-term obligations Capital Leases $ 202.2 192.4 171.2 142.8 130.2 669.5 1,508.3 (533.6) 974.7 (121.1) $ 853.6 The Company subleases certain property to third parties. Future minimum tenant rental income under these non-cancelable operating leases as of February 28, 2015 was $358.8 million. Rent expense and tenant rental income under operating leases consisted of the following (in millions): Minimum rent Contingent rent Total rent expense Tenant rental income Total rent expense, net of tenant rental income Note 13—Income Taxes Fiscal 2014 $ 371.3 4.7 Fiscal 2013 $ 300.8 3.3 376.0 304.1 (51.9) (45.3) $ 324.1 $ 258.8 The components of (loss) income before income taxes consisted of the following (in millions): Fiscal 2014 Domestic $ (1,379.1) Foreign 0.5 $ (1,378.6) Fiscal 2012 $ 53.4 0.5 53.9 (19.2) $ 34.7 Fiscal 2013 Fiscal 2012 $ 1,140.5 $ 31.5 $ 1,140.5 $ 31.5 F-68 (Continued) hitt) nwwscc.guc Archo.c. edgar data 1646972 000119312515335826 d900395dsla.htm110 14 2015 9.03.02 AR CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0081817 SDNY_GM_00228001 EFTA01382452