Best Buy 2008 Annual Report Download - page 94

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$ in millions, except per share amounts or as otherwise noted
6. Leases
The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows
in fiscal 2008, 2007 and 2006:
2008 2007 2006
Minimum rentals $757 $679 $569
Contingent rentals 111
Total rent expense 758 680 570
Less: sublease income (22) (20) (18)
Net rent expense $736 $660 $552
The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including
contingent rentals) at March 1, 2008, were as follows:
Capital Financing Operating
Fiscal Year Leases Leases Leases
2009 $ 16 $ 29 $ 772
2010 16 29 761
2011 8 29 716
2012 2 28 666
2013 2 28 635
Thereafter 19 115 3,282
Subtotal 63 258 $6,832
Less: imputed interest (12) (61)
Present value of lease obligations $ 51 $197
Total minimum lease payments have not been reduced by employees’ pre-tax earnings. Our matching contribution is
minimum sublease rent income of approximately $99 due subject to annual approval by the Compensation and
under future noncancelable subleases. Human Resources Committee of the Board. The total
matching contributions, net of forfeitures, were $53, $26
During fiscal 2008, we entered into agreements totaling
and $19 in fiscal 2008, 2007 and 2006, respectively.
$35 related to various information system capital leases.
These leases were noncash transactions and have been We have a non-qualified, unfunded deferred
eliminated from our consolidated statements of cash flows. compensation plan for highly compensated employees and
our Board members. Contributions are limited under
7. Benefit Plans qualified defined contribution plans. Amounts contributed
and deferred under the deferred compensation plan are
We sponsor retirement savings plans for employees
credited or charged with the performance of investment
meeting certain age and service requirements. Participants
options offered under the plan and elected by the
may choose from various investment options including a
participants. In the event of bankruptcy, the assets of this
fund comprised of our company stock. Participants can
plan are available to satisfy the claims of general
contribute up to 50% of their eligible compensation
creditors. The liability for compensation deferred under this
annually as defined by the plan document, subject to IRS
plan was $74 and $75 at March 1, 2008, and March 3,
limitations. Prior to January 2007, we matched up to 50%
2007, respectively, and is included in long-term liabilities.
of the first 5% of participating employees’ pre-tax
We manage the risk of changes in the fair value of the
earnings. Beginning in January 2007, we changed the
liability for deferred compensation by electing to match
match to 100% of the first 3% of participating employees’
our liability under the plan with investment vehicles that
pre-tax earnings and 50% of the next 2% of participating
86