Foot Locker 2004 Annual Report Download - page 55

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Maturities of long-term debt and minimum rent payments under capital leases in future periods are:
Long-Term
Debt
Capital
Leases Total
(in millions)
2005 ................................................................ $ 18 $— $ 18
2006 ................................................................ 18 — 18
2007................................................................. 26 14 40
2008 ................................................................ 26 — 26
2009 ................................................................ 87 — 87
Thereafter ........................................................... 176 — 176
351 14 365
Less: Current portion ............................................... 18 — 18
$333 $14 $347
Interest expense related to long-term debt and capital lease obligations, including the amortization of the associated
debt issuance costs, was $19 million in 2004, $22 million in 2003 and $28 million in 2002.
14 Leases
The Company is obligated under operating leases for almost all of its store properties. Some of the store leases contain
purchase or renewal options with varying terms and conditions. Management expects that in the normal course of business,
expiring leases will generally be renewed or, upon making a decision to relocate, replaced by leases on other premises.
Operating lease periods generally range from 5 to 10 years. Certain leases provide for additional rent payments based on
a percentage of store sales. Rent expense includes real estate taxes, insurance, maintenance, and other costs as required
by some of the Company’s leases. The present value of operating leases is discounted using various interest rates ranging
from 4 percent to 13 percent.
Rent expense consists of the following:
2004 2003 2002
(in millions)
Rent ....................................................... $605 $532 $491
Contingent rent based on sales ............................. 11 11 11
Sublease income ........................................... (1) (1) (1)
Total rent expense ......................................... $615 $542 $501
Future minimum lease payments under non-cancelable operating leases are:
(in millions)
2005 ..................................................................................... $ 449
2006 ..................................................................................... 423
2007...................................................................................... 383
2008 ..................................................................................... 322
2009 ..................................................................................... 256
Thereafter ................................................................................ 890
Total operating lease commitments ....................................................... $2,723
Present value of operating lease commitments ........................................... $1,989
39