LEASES AND LEASE-FINANCED TRANSACTIONS

12 Months Ended

Jan. 28, 2012

LEASES AND LEASE-FINANCED TRANSACTIONS

LEASES AND LEASE-FINANCED TRANSACTIONS

8.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:

	2011			2010			2009
Minimum rentals	$	715		$	721		$	720
Contingent payments	13			11			11
Tenant income	(109		)	(109		)	(111		)
Total rent expense	$	619		$	623		$	620

Minimum annual rentals and payments under capital leases and lease-financed transactions for the five years subsequent to 2011 and in the aggregate are:

	CapitalLeases			OperatingLeases		Lease-FinancedTransactions
2012	$	59		$	725	$	5
2013	49			683		6
2014	45			630		6
2015	40			563		7
2016	36			497		7
Thereafter	202			2,197		95
	431			$	5,295	$	126
Less estimated executory costs included in capital leases	—
Net minimum lease payments under capital leases	431
Less amount representing interest	(159		)
Present value of net minimum lease payments under capital leases	$	272

Total future minimum rentals under noncancellable subleases at January 28, 2012, were $258.