NOTE 10: LEASES

We lease the land or the land and buildings at many of our stores. Additionally, we lease office facilities, warehouses and equipment. Most of these leases are classified as operating leases and they expire at various dates through 2080. The majority of our fixed, non-cancelable lease terms are 15 to 30 years for Nordstrom full-line stores and 10 to 15 years for Nordstrom Rack stores. Many of our leases include options that allow us to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Most of our leases also provide for payment of operating expenses, such as common area charges, real estate taxes and other executory costs, and some leases require additional payments based on sales, referred to as "percentage rent."

Future minimum lease payments as of January 28, 2012 are as follows:


Fiscal year	Capital leases			Operating leases
2012		$2			$122
2013		2			118
2014		2			111
2015		2			106
2016		2			100
Thereafter		3			506
Total minimum lease payments		13			$1,063
Less: amount representing interest		(3	)
Present value of net minimum lease payments		$10

Rent expense for 2011, 2010 and 2009 was as follows:


Fiscal year	2011			2010			2009
Minimum rent:
Store locations		$108			$94			$76
Offices, warehouses and equipment		23			19			13
Percentage rent		12			9			9
Property incentives		(65	)		(60	)		(55)
Total rent expense		$78			$62			$43

The rent expense above does not include common area charges, real estate taxes and other executory costs which were $69 in 2011, $65 in 2010 and $60 in 2009.