O'Reilly Auto Parts 2003 Annual Report Download - page 48

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notes to consolidated financial statements (continued)
page 46
The Company also leases certain office space, retail stores, property and equipment under long-term, non-cancelable operating leases.
Most of these leases include renewal options and some include options to purchase and provisions for percentage rent based on sales.
At December 31, 2003, future minimum rental payments under all of the Company’s operating leases for each of the next five years
and in the aggregate are as follows:
related non-related
(amounts in thousands) parties parties total
2004 $ 3,255 $ 29,416 $ 32,671
2005 3,062 27,016 30,078
2006 2,882 25,240 28,122
2007 2,865 22,909 25,774
2008 2,790 19,627 22,417
Thereafter 52,732 129,488 182,220
$ 67,586 $ 253,696 $ 321,282
Rental expense amounted to $31,865,000, $29,652,000 and $25,122,000 for the years ended December 31, 2003, 2002, and 2001,
respectively.
Other Commitments
The Company had construction commitments, which totaled approximately $52.8 million, at December 31, 2003.
note 7 – legal proceedings
The Company is involved in various legal proceedings incidental to the conduct of its business. Although the Company cannot ascertain
the amount of liability that it may incur from any of these matters, it does not currently believe that, in the aggregate, they will have
a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company.
note 8 – employee benefit plans
The Company sponsors a contributory profit sharing and savings plan that covers substantially all employees who are 21 years of
age with at least six months of service. A total of 1,600,000 shares of common stock were reserved for issuance under the plan.
Employees may contribute up to 100% of their annual compensation subject to Internal Revenue Code maximum limitations. The
Company has agreed to make matching contributions equal to 50% of the first 2% of each employee’s contribution and 25% of the
next 4% of each employee’s contribution. Additional contributions to the plan may be made as determined annually by the Board
of Directors. After two years of service, Company contributions and earnings thereon vest at the rate of 20% per year. Company
contributions charged to operations amounted to $4,353,000 in 2003, $3,438,000 in 2002 and $3,207,000 in 2001. Company
contributions, in the form of common stock, to the profit sharing and savings plan to match employee contributions during the
years ended December 31 were as follows:
year market
contributed shares value
2003 42,183 $1,478,000
2002 38,354 1,136,000
2001 37,567 969,000