Home Depot 2003 Annual Report Download - page 36

Total rent expense, net of minor sublease income for fiscal 2003,
2002 and 2001, was $570 million, $533 million and $522 million,
respectively. Certain store leases also provide for contingent rent
payments based on percentages of sales in excess of specified
minimums. Contingent rent expense for fiscal 2003, 2002 and
2001, was approximately $7million, $8million and $10 million,
respectively. Real estate taxes, insurance, maintenance and oper-
ating expenses applicable to the leased property are obligations
of the Company under the lease agreements.
The approximate future minimum lease payments under capital
and all other leases, including the off-balance sheet lease, at
February 1, 2004, were as follows (amounts in millions):
Capital Operating
Fiscal Year Leases Leases
2004 $ 52 $ 608
2005 51 577
2006 52 517
2007 53 486
2008 54 452
Thereafter through 2045 647 5,199
909 $7,839
Less imputed interest 591
Net present value of
capital lease obligations 318
Less current installments 7
Long-term capital lease obligations,
excluding current installments $311
Short-term and long-term obligations for capital leases are
included in the accompanying Consolidated Balance Sheets in
Other Accrued Expenses and Long-Term Debt, respectively. The
assets under capital leases recorded in Property and Equipment,
net of amortization, totaled $263 million and $235 million at
February 1, 2004 and February 2, 2003, respectively.
6. EMPLOYEE BENEFIT PLANS
The Company maintains three active defined contribution retirement
plans (“the Plans”). All associates satisfying certain service
requirements are eligible to participate in the Plans. The Company
makes cash contributions each payroll period to purchase shares
of the Company’s common stock, up to specified percentages of
associates’ contributions as approved by the Board of Directors.
The Company’s contributions to the Plans were $106 million,
$99 million and $97 million for fiscal 2003, 2002 and 2001,
respectively. At February 1, 2004, the Plans held a total of
35 million shares of the Company’s common stock in trust for
plan participants.
The Company also maintains a restoration plan to provide certain
associates deferred compensation that they would have received
under the Plans as a matching contribution if not for the maximum
compensation limits under the Internal Revenue Code. The
Company funds the restoration plan through contributions made
to a grantor trust, which are then used to purchase shares of the
Company’s common stock in the open market. Compensation
expense related to this plan for fiscal 2003, 2002 and 2001 was
not material.
7. BASIC AND DILUTED WEIGHTED
AVERAGE COMMON SHARES
The reconciliation of basic to diluted weighted average common
shares for fiscal 2003, 2002 and 2001 was as follows (amounts
in millions):
Fiscal Year Ended
February 1,February 2, February 3,
2004 2003 2002
Weighted average
common shares 2,283 2,336 2,335
Effect of potentially
dilutive securities:
Stock Plans 6818
Diluted weighted average
common shares 2,289 2,344 2,353
Notes to Consolidated Financial Statements
The Home Depot, Inc. and Subsidiaries
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