Korn Business Solutions
the Following Footnote Accompanied the Company's 2013

question 110

Essay

Korn Business Solutions
The following footnote accompanied the company's 2013 financial statements:
The Corporation leases office,warehouse and showroom space,retail stores,and office equipment under operating leases,which expire no later than 2025.The Corporation normalizes fixed escalations in rental expense under its operating leases.Minimum annual rentals under non-cancelable operating leases,excluding operating cost escalations and contingent rental amounts based upon retail sales,are payable as follows:
Fiscal year ending March 31,
$$\begin{array}{l}\begin{array} { l } 2014 \\2015 \\2016 \\2017 \\2018 \\\text { Thereater }\end{array}\begin{array} { l } \$ 10,051,000 \\11,121,000 \\10,161,000 \\9,063,000 \\8,814,000 \\46,681,000\end{array}\end{array}$$ Rent expense was $12,551,000;$8,911,000;and $5,768,000 for the years ended March 31,2013,2012,and 2011,respectively.
Refer to Korn Business Solutions.What are the two types of leases that a company can have? Describe each briefly.