Home Depot 2012 Annual Report Download - page 46

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40
4. PROPERTY AND LEASES
Property and equipment as of February 3, 2013 and January 29, 2012 consisted of the following (amounts in millions):
February 3,
2013 January 29,
2012
Property and Equipment, at cost:
Land $ 8,485 $ 8,480
Buildings 17,981 17,737
Furniture, Fixtures and Equipment 9,338 10,040
Leasehold Improvements 1,382 1,372
Construction in Progress 647 758
Capital Leases 658 588
38,491 38,975
Less Accumulated Depreciation and Amortization 14,422 14,527
Net Property and Equipment $ 24,069 $ 24,448
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 2012, 2011 and 2010 was $849 million, $823 million and $821
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 2012, 2011 and 2010 was approximately $4 million, $4 million and
$3 million, respectively. Real estate taxes, insurance, maintenance and operating 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 at February 3, 2013 were as follows
(amounts in millions):
Fiscal Year Capital
Leases Operating
Leases
2013 $ 112 $ 856
2014 107 807
2015 99 747
2016 97 656
2017 93 582
Thereafter through 2097 797 4,560
1,305 $ 8,208
Less imputed interest 813
Net present value of capital lease obligations 492
Less current installments 33
Long-term capital lease obligations, excluding current installments $ 459
Short-term and long-term obligations for capital leases are included in the accompanying Consolidated Balance Sheets in
Current Installments of Long-Term Debt and Long-Term Debt, respectively. The assets under capital leases recorded in
Property and Equipment, net of amortization, totaled $368 million and $328 million at February 3, 2013 and January 29,
2012, respectively.