3. Leases
Following is a summary of the Company's net rental expense for operating leases for the respective years:
The Company and its subsidiaries lease retail stores, warehouse facilities, office facilities and equipment under noncancelable operating leases typically over periods ranging from 5 to 25 years, along with options that permit renewals for additional periods.
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| Fiscal Year | |||
| In millions | 2000 | 1999 | 1998 |
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| Minimum rentals | $ 684.9 | $ 572.4 | $ 459.1 |
| Contingent rentals | 66.3 | 64.8 | 60.3 |
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| 751.2 | 637.2 | 519.4 | |
| Less: sublease income | (9.2) | (13.2) | (14.0) |
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| $ 742.0 | $ 624.0 | $ 505.4 | |
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Following is a summary of the future minimum lease payments under capital and operating leases as of December 30, 2000:
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| In millions | Capital Leases |
Operating Leases |
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| 2001 | $ 0.4 | $ 718.6 | |
| 2002 | 0.2 | 679.8 | |
| 2003 | 0.2 | 637.7 | |
| 2004 | 0.2 | 597.0 | |
| 2005 | 0.2 | 542.7 | |
| Thereafter | 0.9 | 4,955.3 | |
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| 2.1 | $ 8,131.1 | ||
| Less: imputed interest | (0.9) | ||
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| Present value of capital lease obligations | $ 1.2 | ||
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The Company finances a portion of its store development program through sale-leaseback transactions. Proceeds from sale-leaseback transactions totaled $299.3 million in 2000 and $229.2 million in 1999. The properties were sold at net book value and the resulting leases are being accounted for as operating leases and are included in the above table.
The future cash payments associated with the noncancelable lease obligations related to various restructuring programs totaled $83.6 million at December 30, 2000 and $98.5 million at January 1, 2000. The Company believes that the reserve balances as of December 30, 2000 are adequate to cover the remaining noncancelable lease liabilities associated with the various restructuring programs. These leases are included in the above table.
