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## 15. SUPPLEMENTARY INCOME STATEMENT INFORMATION 

The following amounts are included in property operating expenses for the years ended December 31, 2003, 2002 and 2001 (in thousands): 

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## 16. LEASE AGREEMENTS 

We are the lessor of a total of 2,040 stores in our 35 consolidated factory outlet centers, under operat- ing leases with initial terms that expire from 2004 to 2021. Most leases are renewable for five years at the lessee’s option. Future minimum lease receipts under non-cancelable operating leases as of December 31, 2003 are as follows (in thousands): 

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## 17. COMMITMENTS AND CONTINGENCIES 

We purchased the rights to lease land on which two of the outlet centers are situated for $1,536,000. These leasehold rights are being amortized on a straight-line basis over 30 and 40 year periods, respectively. Accumulated amortization was $762,000 and $713,000 at December 31, 2003 and 2002, respectively. 

Our non-cancelable operating leases, with initial terms in excess of one year, have terms that expire from 2004 to 2085. Annual rental payments for these leases totaled approximately $2,572,000, $2,437,000 and $2,333,000, for the years ended December 31, 2003, 2002 and 2001, respectively. Minimum lease payments for the next five years and thereafter are as follows (in thousands): 

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We are also subject to legal proceedings and claims which have arisen in the ordinary course of our busi- ness and have not been finally adjudicated. In our opinion, the ultimate resolution of these matters will have no material effect on our results of operations, financial condition or cash flows. 

