This excerpt taken from the SHLD 10-K filed Mar 15, 2006.
The Company leases 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
Minimum lease obligations, excluding taxes, insurance and other expenses payable directly by the Company, for leases in effect as of January 28, 2006, were as follows: