Staples 2004 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2004 Staples 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 129

  • 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
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129

STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
NOTE G Commitments and Contingencies (Continued)
Future minimum lease commitments do not include $56.3 million of minimum rentals due under non-cancelable
subleases.
Rent expense approximated $524.0 million, $480.0 million and $445.2 million for fiscal years 2004, 2003 and 2002,
respectively.
As of January 29, 2005, Staples had purchase obligations of $433.7 million. Many of our purchase commitments are
cancelable by us without payment, and we have excluded such commitments, along with intercompany commitments.
Contracts cancelable without cause, without penalty and with notice are valued on the basis of an estimate of what we
would owe under the contract upon providing notice of termination under the terms of the contract. Such purchase
obligations will arise as follows (in thousands):
Fiscal Year: Total
2005 ............................................................ $ 284,539
2006 through 2007 ................................................. 76,534
2008 through 2009 ................................................. 21,875
Thereafter ....................................................... 50,775
$ 433,723
Import letters of credit are issued by Staples during the ordinary course of business through major financial
institutions as required by certain vendor contracts. As of January 29, 2005, Staples had open letters of credit totaling
$37.3 million.
The Company is involved from time to time in litigation arising from the operation of its business. The Company
does not believe that any such litigation, either alone or in the aggregate, will have a material adverse effect on the
Company’s financial position or results of operations.
C-19