LEASES AND LEASE-FINANCED TRANSACTIONS

12 Months Ended

Jan. 31, 2015

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:

	2014			2013			2012
Minimum rentals	$	795		$	706		$	727
Contingent payments	16			13			13
Tenant income	(104		)	(106		)	(112		)
Total rent expense	$	707		$	613		$	628

Minimum annual rentals and payments under capital leases and lease-financed transactions for the five years subsequent to 2014 and in the aggregate are:

	Capital  Leases		Operating  Leases		Lease-  Financed  Transactions
2015	$	63	$	837	$	7
2016	60		773		7
2017	58		699		8
2018	49		629		8
2019	45		554		9
Thereafter	409		2,877		79
Total	684		$	6,369	$	118
Less estimated executory costs included in capital leases	—
Net minimum lease payments under capital leases	684
Less amount representing interest	231
Present value of net minimum lease payments under capital leases	$	453

Total future minimum rentals under noncancellable subleases at January 31, 2015 were $219.