LEASES AND LEASE-FINANCED TRANSACTIONS

12 Months Ended

Jan. 28, 2017

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:

	2016		2015		2014
Minimum rentals	$	973	$	807	$	795
Contingent payments		16		18		16
Tenant income		(108)		(102)		(104)
Total rent expense	$	881	$	723	$	707

Minimum annual rentals and payments under capital leases and lease-financed transactions for the five years subsequent to 2016 and in the aggregate are:

					Lease-
	Capital		Operating		Financed
	Leases		Leases		Transactions
2017	$	92	$	986	$	7
2018		76		932		8
2019		71		856		8
2020		66		759		9
2021		64		656		9
Thereafter		647		3,992		53
Total	$	1,016	$	8,181	$	94
Less estimated executory costs included in capital leases		—
Net minimum lease payments under capital leases		1,016
Less amount representing interest		348
Present value of net minimum lease payments under capital leases	$	668

Total future minimum rentals under noncancellable subleases at January 28, 2017 were $268.