LEASES

We lease the land or the land and buildings at many of our stores. Additionally, we lease office facilities, warehouses and equipment. Most of these leases are classified as operating leases and they expire at various dates through 2080. The majority of our fixed, non-cancelable lease terms are 15 to 30 years for Nordstrom full-line stores and 10 to 15 years for Nordstrom Rack stores. Many of our leases include options that allow us to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Most of our leases also provide for payment of operating expenses, such as common area charges, real estate taxes and other executory costs, and some leases require additional payments based on sales, referred to as "percentage rent."

Future minimum lease payments as of February 2, 2013 are as follows:



Fiscal year	Capital leases			Operating leases
2013		$2			$153
2014	2			159
2015	2			158
2016	2			155
2017	1			144
Thereafter	1			850
Total minimum lease payments	10				$1,619
Less: amount representing interest	(2		)
Present value of net minimum lease payments		$8

Rent expense for 2012, 2011 and 2010 was as follows:



Fiscal year	2012			2011			2010
Minimum rent:
Store locations		$124			$108			$94
Offices, warehouses and equipment	32			23			19
Percentage rent	14			12			9
Property incentives	(65		)	(65		)	(60		)
Total rent expense		$105			$78			$62

The rent expense above does not include common area charges, real estate taxes and other executory costs which were $74 in 2012, $69 in 2011 and $65 in 2010.