Home Depot 2013 Annual Report Download - page 45

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40
2. PROPERTY AND LEASES
Property and Equipment as of February 2, 2014 and February 3, 2013 consisted of the following (amounts in millions):
February 2,
2014 February 3,
2013
Property and Equipment, at cost:
Land $ 8,375 $ 8,485
Buildings 17,950 17,981
Furniture, Fixtures and Equipment 10,107 9,338
Leasehold Improvements 1,388 1,382
Construction in Progress 548 647
Capital Leases 696 658
39,064 38,491
Less Accumulated Depreciation and Amortization 15,716 14,422
Net Property and Equipment $ 23,348 $ 24,069
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 2013, 2012 and 2011 was $905 million, $849 million and $823
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 2013, 2012 and 2011 was approximately $5 million, $4 million and
$4 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 2, 2014 were as follows
(amounts in millions):
Fiscal Year Capital
Leases Operating
Leases
2014 $ 99 $ 895
2015 94 843
2016 92 754
2017 89 674
2018 83 574
Thereafter through 2097 723 4,456
1,180 $ 8,196
Less imputed interest 681
Net present value of capital lease obligations 499
Less current installments 31
Long-term capital lease obligations, excluding current installments $ 468
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 $374 million and $368 million at February 2, 2014 and February 3,
2013, respectively.