NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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): 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): 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): 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. TANGER FACTORY OUTLET CENTERS, INC. | 59 2004 $ 2,941 2005 2,855 2006 2,768 2007 2,675 2008 2,402 Thereafter 87,556 $ 101,197 2004 $ 112,145 2005 89,397 2006 64,631 2007 43,900 2008 24,282 Thereafter 34,985 $ 369,340 2003 2002 2001 Advertising and promotion $ 10,358 $ 9,578 $ 8,964 Common area maintenance 15,542 13,256 12,636 Real estate taxes 9,312 8,387 7,985 Other operating expenses 5,023 3,661 3,263 $ 40,235 $ 34,882 $ 32,848 16. LEASE AGREEMENTS 17. COMMITMENTS AND CONTINGENCIES