TJ Maxx 2009 Annual Report Download - page 81

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Following is a schedule of future minimum lease payments for continuing operations as of January 30, 2010:
In thousands
Capital
Lease
Operating
Leases
Fiscal Year
2011 $ 3,726 $1,005,366
2012 3,897 940,063
2013 3,912 830,992
2014 3,912 721,111
2015 3,912 586,662
Later years 3,586 1,610,867
Total future minimum lease payments 22,945 $5,695,061
Less amount representing interest 4,746
Net present value of minimum capital lease payments $18,199
The capital lease relates to a 283,000-square-foot addition to TJX’s home office facility. Rental payments
commenced June 1, 2001, and we recognized a capital lease asset and related obligation equal to the present value
of the lease payments of $32.6 million.
Rental expense under operating leases for continuing operations amounted to $962.0 million for fiscal 2010,
$936.6 million for fiscal 2009 and $875.6 million for fiscal 2008. Rental expense includes contingent rent and is
reported net of sublease income. Contingent rent paid was $13.0 million in fiscal 2010, $8.3 million in fiscal 2009 and
$9.7 million in fiscal 2008. Sublease income was $1.3 million in fiscal 2010, $2.1 million in fiscal 2009 and $2.9 million
in fiscal 2008. The total net present value of TJX’s minimum operating lease obligations approximated $4,450.2 million
as of January 30, 2010.
TJX had outstanding letters of credit totaling $37.6 million as of January 30, 2010 and $32.0 million as of
January 31, 2009. Letters of credit are issued by TJX primarily for the purchase of inventory.
H. Stock Incentive Plan
TJX has a stock incentive plan under which options and other share based awards may be granted to its directors,
officers and key employees. This plan has been approved by TJX’s shareholders, and all stock compensation awards are
made under this plan. The Stock Incentive Plan, as amended with shareholder approval, provides for the issuance of up
to 160.9 million shares with 22.7 million shares available for future grants as of January 30, 2010. TJX issues shares from
authorized but unissued common stock.
Total compensation cost related to share-based compensation was $33.5 million net of income taxes of
$21.6 million in fiscal 2010, $31.2 million net of income taxes of $20.1 million in fiscal 2009 and $37.0 million
net of income taxes of $20.3 million in fiscal 2008.
As of January 30, 2010, there was $87.2 million of total unrecognized compensation cost related to nonvested share-
based compensation arrangements granted under the plan. That cost is expected to be recognized over a weighted-
average period of two years.
Options for the purchase of common stock have been granted at 100% of market price on the grant date and
generally vest in thirds over a three-year period starting one year after the grant, and have a ten-year term.
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