LEASES AND LEASE-FINANCED TRANSACTIONS

12 Months Ended

Jan. 30, 2016

LEASES AND LEASE-FINANCED TRANSACTIONS

LEASES AND LEASE-FINANCED TRANSACTIONS

10.LEASES AND  LEASE-FINANCED  TRANSACTIONS

While the Company’s current strategy emphasizes ownership of store real estate, the Company operates primarily in leased facilities. Lease terms generally range from 10 to 20 years with options to renew for varying terms. Terms of certain leases include escalation clauses, percentage rent based on sales or payment of executory costs such as property taxes, utilities or insurance and maintenance.  Rent expense for leases with escalation clauses or other lease concessions are accounted for on a straight-line basis beginning with the earlier of the lease commencement date or the date the Company takes possession.  Portions of certain properties are subleased to others for periods generally ranging from one to 20 years.

Rent expense (under operating leases) consists of:

	2015			2014			2013
Minimum rentals	$	807		$	795		$	706
Contingent payments	18			16			13
Tenant income	(102		)	(104		)	(106		)
Total rent expense	$	723		$	707		$	613

Minimum annual rentals and payments under capital leases and lease-financed transactions for the five years subsequent to 2015 and in the aggregate are:

	Capital Leases		Operating Leases		Lease- Financed Transactions
2016	$	103	$	967	$	7
2017	72		922		7
2018	62		853		8
2019	57		774		8
2020	52		674		9
Thereafter	527		4,199		63
Total	$	873	$	8,389	$	102
Less estimated executory costs included in capital leases	—
Net minimum lease payments under capital leases	873
Less amount representing interest	293
Present value of net minimum lease payments under capital leases	$	580

Total future minimum rentals under noncancellable subleases at January 30, 2016 were $261.