NOTE 9: 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-cancellable 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 January 28, 2017 are as follows:



Fiscal year	Capital leases		Operating leases
2017		$1		$277
2018	1		302
2019	—		299
2020	—		280
2021	—		256
Thereafter	—		1,435
Total minimum lease payments		$2		$2,849
Less: amount representing interest	—
Present value of net minimum lease payments		$2

Rent expense for 2016, 2015 and 2014 was as follows:



Fiscal year	2016			2015			2014
Minimum rent:
Store locations		$230			$204			$170
Offices, warehouses and equipment	40			41			36
Percentage rent	12			13			14
Property incentives	(80		)	(82		)	(83		)
Total rent expense		$202			$176			$137

The rent expense above does not include common area charges, real estate taxes and other executory costs, which were $112 in 2016, $97 in 2015 and $88 in 2014.