Best Buy 2003 Annual Report Download - page 172
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Total rent expense for discontinued operations $ 145 $ 153 $ 13
Future minimum lease obligations, net of subleases rental income, by fiscal year (not including percentage rentals) for all operating
leases at March 1, 2003, were as follows:
Fiscal Year Continuing
Operations Discontinued
Operations
2004 $ 413 $ 92
2005 395 89
2006 363 68
2007 347 54
2008 340 44
Thereafter 2,576 147
59
$ in millions, except per share amounts
8. Benefit Plans
We sponsor retirement savings plans for employees meeting certain age and service requirements. The plans provide for
Company−matching contributions, which are subject to annual approval by our Board of Directors. The total matching contributions
were $13, $10 and $7 in fiscal 2003, 2002 and 2001, respectively, for continuing operations.
We have a deferred compensation plan for certain management employees and our Board of Directors. The liability for compensation
deferred under this plan was $42 and $33 at March 1, 2003, and March 2, 2002, respectively, and is included in long−term liabilities
of continuing operations. We have elected to match our liability under the plan through the purchase of life insurance. The cash value
of the insurance, which includes funding for future deferrals, was $51 and $36 in fiscal 2003 and 2002, respectively, and is included in
other assets from continuing operations. Both the asset and the liability are carried at fair value.
9. Income Taxes
The following is a reconciliation of income tax expense to the federal statutory tax rate for continuing operations for the past three
fiscal years:
2003 2002 2001
Federal income tax at the statutory rate $ 355 $ 324 $ 227
State income taxes, net of federal benefit 35 34 27
Tax−exempt interest income (10) (3) (9)
Other 12 1 3
Income tax expense $ 392 $ 356 $ 248
Effective tax rate 38.7% 38.4% 38.3%
Income tax expense for continuing operations was comprised of the following for the past three fiscal years:
2003 2002 2001
Current:
Federal $ 375 $ 301 $ 187
State 51 39 25
Foreign 3 1 —
429 341 212
Deferred: