LEASES

The Company leases certain retail locations, office space, warehouse and distribution space, equipment and vehicles. While most of the leases are operating leases, certain locations and equipment are leased under capital leases. As leases expire, it can be expected that, in the normal course of business, certain leases will be renewed or replaced.

Certain lease agreements include escalating rents over the lease terms. The Company expenses rent on a straight-line basis over the lease term, which commences on the date the Company has the right to control the property. The cumulative expense recognized on a straight-line basis in excess of the cumulative payments is included in Other Accrued Expenses and Other Long-Term Liabilities in the accompanying Consolidated Balance Sheets.

Total rent expense, net of minor sublease income, for fiscal 2011, 2010 and 2009 was $823 million, $821 million and $823 million, respectively. Certain store leases also provide for contingent rent payments based on percentages of sales in excess of specified minimums. Contingent rent expense for fiscal 2011, 2010 and 2009 was approximately $4 million, $3 million and $4 million, respectively. Real estate taxes, insurance, maintenance and operating expenses applicable to the leased property are obligations of the Company under the lease agreements.

The approximate future minimum lease payments under capital and all other leases at January 29, 2012 were as follows (amounts in millions):



Fiscal Year	Capital Leases		Operating Leases
2012	$	106	$	800
2013	104		746
2014	100		682
2015	93		637
2016	90		557
Thereafter through 2097	766		4,577
	1,259		$	7,999
Less imputed interest	810
Net present value of capital lease obligations	449
Less current installments	29
Long-term capital lease obligations, excluding current installments	$	420

Short-term and long-term obligations for capital leases are included in the accompanying Consolidated Balance Sheets in Current Installments of Long-Term Debt and Long-Term Debt, respectively. The assets under capital leases recorded in Property and Equipment, net of amortization, totaled $328 million and $336 million at January 29, 2012 and January 30, 2011, respectively.