|
The company leases sales and administrative office facilities, distribution
center facilities, automobiles, computers and other equipment under operating
leases. Rental expense under all operating leases was $86,626,000 in 2004,
$81,781,000 in 2003 and $77,593,000 in 2002. As of December 31, 2004, future
minimum payments under operating leases with noncancelable terms in excess
of one year were:
|
 |
|
| 2005 |
$ 40,709 |
| 2006 |
33,407 |
| 2007 |
24,747 |
| 2008 |
17,428 |
| 2009 |
14,827 |
| Thereafter |
21,971 |
|
| Total |
$153,089 |
|
The company enters into operating leases in the U.S. for vehicles whose
noncancellable terms are one year or less in duration with month-to-month
renewal options. These leases have been excluded from the table above. The
company estimates payments under such leases will approximate $39,000,000
in 2005. These automobile leases have guaranteed residual values that have
historically been satisfied primarily by the proceeds on the sale of the vehicles.
No estimated losses have been recorded for these guarantees as the company
believes, based upon the results of previous leasing arrangements, that the
potential recovery of value from the vehicles when sold will be greater than the
residual value guarantee.
|
