Home Depot 2004 Annual Report Download - page 39

The approximate future minimum lease payments under capital
and all other leases, including the off-balance sheet lease, at
January 30, 2005, were as follows (in millions):
Capital Operating
Fiscal Year Leases Leases
2005 $ 67 $ 660
2006 67 613
2007 67 566
2008 68 514
2009 67 464
Thereafter through 2045 772 5,113
1,108 $7,930
Less imputed interest 757
Net present value of
capital lease obligations 351
Less current installments 10
Long-term capital lease obligations,
excluding current installments $ 341
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 $283 million and $263 million at
January 30, 2005, and February 1, 2004, respectively.
6|EMPLOYEE BENEFIT PLANS
The Company maintains three active defined contribution retire-
ment plans (“the Plans”). All associates satisfying certain service
requirements are eligible to participate in the Plans. The Company
makes cash contributions each payroll period up to specified
percentages of associates’ contributions as approved by the Board
of Directors.
The Company’s contributions to the Plans were $114 million, $106 mil-
lion and $99 million for fiscal 2004, 2003 and 2002, respectively. At
January 30, 2005, the Plans held a total of 34 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 2004, 2003 and 2002 was
not material.
7|BASIC AND DILUTED WEIGHTED AVERAGE
COMMON SHARES
The reconciliation of basic to diluted weighted average common
shares for fiscal 2004, 2003 and 2002 was as follows (amounts
in millions):
Fiscal Year Ended
January 30, February 1, February 2,
2005 2004 2003
Weighted average
common shares 2,207 2,283 2,336
Effect of potentially
dilutive securities:
Stock Plans 96 8
Diluted weighted average
common shares 2,216 2,289 2,344
Stock plans include shares granted under the Company’s ESPPs and
stock incentive plans, as well as shares issued for deferred compen-
sation stock plans. Options to purchase 49.1 million, 67.9 million
and 52.9 million shares of common stock at January 30, 2005,
February 1, 2004 and February 2, 2003, respectively, were excluded
from the computation of Diluted Earnings per Share because their
effect would have been anti-dilutive.
Notes to Consolidated Financial Statements (continued)
The Home Depot, Inc. and Subsidiaries
37The Home Depot, Inc.