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 February 3, 2018 are as follows:



Fiscal year	Operating leases
2018		$309
2019	312
2020	293
2021	269
2022	247
Thereafter	1,310
Total minimum lease payments		$2,740

Rent expense for 2017, 2016 and 2015 was as follows:



Fiscal year	2017			2016			2015
Minimum rent:
Store locations		$274			$230			$204
Offices, warehouses and equipment	44			40			41
Percentage rent	11			12			13
Property incentives	(79		)	(80		)	(82		)
Total rent expense		$250			$202			$176

The rent expense above does not include common area charges, real estate taxes and other executory costs, which were $121 in 2017, $112 in 2016 and $97 in 2015.