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Leases

12 Months Ended

Feb. 25, 2012

NOTE 7—LEASES

The Company leases certain retail stores, distribution centers, office facilities and equipment from third parties. Many of these leases include renewal options and, to a limited extent, include options to purchase. Future minimum lease payments to be made by the Company for noncancellable operating leases and capital leases as of February 25, 2012 consist of the following:


	Lease Obligations
Fiscal Year	Operating Leases		Capital Leases
2013	$	358	$	150
2014		355		149
2015		322		145
2016		285		142
2017		244		135
Thereafter		1,321		1,162

Total future minimum obligations	$	2,885		1,883

Less interest				(787	)

Present value of net future minimum obligations				1,096
Less current obligations				(65	)

Long-term obligations			$	1,031

Total future minimum obligations have not been reduced for future minimum subtenant rentals of $231 under certain operating subleases.

Rent expense and subtenant rentals under operating leases consisted of the following:


	2012			2011			2010
Minimum rent	$	394		$	435		$	455
Contingent rent		6			5			6

		400			440			461
Subtenant rentals		(52	)		(66	)		(66	)

	$	348		$	374		$	395

The Company leases certain property to third parties under both operating and direct financing leases. Under the direct financing leases, the Company leases buildings to independent retail customers with terms ranging from five to 20 years. Future minimum lease and subtenant rentals under noncancellable leases as of February 25, 2012 consist of the following:


	Lease Receipts
Fiscal Year	Operating Leases		Direct Financing Leases
2013	$	23	$	3
2014		15		2
2015		10		2
2016		9		1
2017		7		1
Thereafter		12		1

Total minimum lease receipts	$	76		10

Less unearned income				(2	)

Net investment in direct financing leases				8
Less current portion				(2	)

Long-term portion			$	6

The carrying value of owned property leased to third parties under operating leases was as follows:


	2012			2011
Property, plant and equipment	$	25		$	24
Less accumulated depreciation		(8	)		(6	)

Property, plant and equipment, net	$	17		$	18