Home Depot 2010 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2010 Home Depot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

The following table summarizes restricted stock and performance shares outstanding at January 30, 2011 (shares
in thousands):
Number of
Shares
Weighted
Average Grant
Date Fair Value
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
Granted 5,799 32.31
Restrictions lapsed (5,276) 32.28
Canceled (1,747) 30.11
Outstanding at January 30, 2011 19,439 $30.18
As of January 30, 2011, there was $259 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
two years. The total fair value of restricted stock and performance shares vesting during fiscal 2010, 2009 and
2008 was $168 million, $41 million and $33 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 2010, 2009 and 2008 was $821 million, $823 million
and $846 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 2010, 2009 and 2008
was approximately $3 million, $4 million and $5 million, respectively. Real estate taxes, insurance, maintenance
and operating expenses applicable to the leased property are obligations of the Company under the lease
agreements.
50