LEASES AND LEASE-FINANCED TRANSACTIONS

12 Months Ended

Feb. 02, 2019

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:

	2018		2017		2016
Minimum rentals	$	967	$	1,005	$	973
Contingent payments		19		19		16
Tenant income		(102)		(113)		(108)
Total rent expense	$	884	$	911	$	881

Minimum annual rentals and payments under capital leases and lease-financed transactions for the five years subsequent to 2019 and in the aggregate are listed below.  Amounts in the table only include payments through the noncancelable lease term.

					Lease-
	Capital		Operating		Financed
	Leases		Leases		Transactions
2019	$	103	$	948	$	5
2020		89		880		6
2021		86		773		5
2022		82		649		5
2023		81		556		5
Thereafter		766		3,197		17
Total	$	1,207	$	7,003	$	43
Less estimated executory costs included in capital leases		—
Net minimum lease payments under capital leases		1,207
Less amount representing interest		372
Present value of net minimum lease payments under capital leases	$	835

Total future minimum rentals under noncancellable subleases at February 2, 2019 were $183.