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I don't think it frees up any money. The footnote is only indicating that
they have $50 million in lease obligations for the upcoming year. I may be missing something but what this would potentially affect is the asset turnover and leverage ratios since non-capitalized leases are off-balance sheet items and so don't get included in the Total Assets category. ********************************************** Mark D. Guinney, CFA Consultant Watson Wyatt Investment Consulting 345 California Street, Ste. 1400 San Francisco, CA 94104 (415) 733-4487 ph. (415) 733-4190 fax ____________________Reply Separator____________________ Subject: Re: Home Depot Memo - Revised Author: Jeff.Dasovich@enron.com Date: 02/08/2001 11:13 AM Gang: Quick question. Does the lease-buy-back free up $50M of funds for 1987? Mark, is that captured in the 1987 cash flows? Don't think that should change our recommendation, but ran across it in the case and was wondering if we captured it. Best, Jeff
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