Home Depot 2009 Annual Report Download - page 56

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The following table summarizes restricted stock and performance shares outstanding at January 31, 2010
(shares in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
Outstanding at January 28, 2007 10,130 $39.20
Granted 7,091 39.10
Restrictions lapsed (2,662) 39.01
Canceled (2,844) 39.37
Outstanding at February 3, 2008 11,715 $39.14
Granted 7,938 27.14
Restrictions lapsed (1,251) 34.37
Canceled (2,115) 34.86
Outstanding at February 1, 2009 16,287 $34.22
Granted 8,257 23.41
Restrictions lapsed (1,686) 34.65
Canceled (2,195) 31.84
Outstanding at January 31, 2010 20,663 $30.11
As of January 31, 2010, there was $332 million of unamortized stock-based compensation expense related to
restricted stock and performance shares which is expected to be recognized over a weighted average period of
three years. The total fair value of restricted stock and performance shares vesting during fiscal 2009, 2008 and
2007 was $41 million, $33 million and $103 million, respectively.
8. LEASES
The Company leases certain retail locations, office space, warehouse and distribution space, equipment and
vehicles. While most of the leases are operating leases, certain locations and equipment are leased under capital
leases. As leases expire, it can be expected that, in the normal course of business, certain leases will be renewed
or replaced.
Certain lease agreements include escalating rents over the lease terms. The Company expenses rent on a
straight-line basis over the lease term which commences on the date the Company has the right to control the
property. The cumulative expense recognized on a straight-line basis in excess of the cumulative payments is
included in Other Accrued Expenses and Other Long-Term Liabilities in the accompanying Consolidated
Balance Sheets.
Total rent expense, net of minor sublease income for fiscal 2009, 2008 and 2007 was $823 million,
$846 million and $824 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 2009, 2008
and 2007 was approximately $4 million, $5 million and $6 million, respectively. Real estate taxes, insurance,
maintenance and operating expenses applicable to the leased property are obligations of the Company under the
lease agreements.
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