LEASES AND LEASE-FINANCED TRANSACTIONS

12 Months Ended

Feb. 03, 2018

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:

	2017		2016		2015
Minimum rentals	$	1,005	$	973	$	807
Contingent payments		19		16		18
Tenant income		(113)		(108)		(102)
Total rent expense	$	911	$	881	$	723

Minimum annual rentals and payments under capital leases and lease-financed transactions for the five years subsequent to 2017 and in the aggregate are:

					Lease-
	Capital		Operating		Financed
	Leases		Leases		Transactions
2018	$	88	$	992	$	8
2019		78		936		8
2020		74		838		9
2021		71		736		9
2022		68		606		9
Thereafter		692		3,664		43
Total	$	1,071	$	7,772	$	86
Less estimated executory costs included in capital leases		—
Net minimum lease payments under capital leases		1,071
Less amount representing interest		355
Present value of net minimum lease payments under capital leases	$	716

Total future minimum rentals under noncancellable subleases at February 3, 2018 were $213.