NOTE 9—LEASES

Supervalu leases most of its Retail stores and certain distribution centers, office facilities and equipment from third parties. Many of these leases include renewal options and, in certain instances, also include options to purchase. Future minimum lease payments to be made by Supervalu for noncancellable operating leases and capital leases as of February 25, 2017 consist of the following:



	Lease Obligations
Fiscal Year	Operating Leases		Capital Leases
2018	$	76	$	42
2019	74		41
2020	63		38
2021	51		33
2022	36		27
Thereafter	133		101
Total future minimum obligations	$	433	282
Less interest			(70		)
Present value of net future minimum obligations			212
Less current capital lease obligations			(26		)
Long-term capital lease obligations			$	186

Total future minimum obligations have not been reduced for future minimum subtenant rentals under certain operating subleases.

Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following:



	2017			2016			2015
Minimum rent	$	92		$	96		$	95
Contingent rent	4			4			6
Rent expense	96			100			101
Less subtenant rentals	(27		)	(27		)	(27		)
Total net rent expense	$	69		$	73		$	74

Supervalu leases certain property to third parties under operating, capital and direct financing leases. Under the direct financing leases, Supervalu leases buildings to Wholesale customers with terms ranging from one to three years.

Future minimum lease and subtenant rentals to be received under noncancellable operating and deferred financing income leases, under which Supervalu is the lessor, as of February 25, 2017, consist of the following:



	Lease Receipts
Fiscal Year	Operating Leases		Direct Financing Leases
2018	$	17	$	—
2019	16		—
2020	11		1
2021	7		—
2022	6		—
Thereafter	28		—
Total minimum lease receipts	$	85	1
Less interest			—
Net investment in direct financing leases			1
Less current portion			—
Long-term portion			$	1

The carrying value of owned property leased to third parties under operating leases was as follows:



	2017			2016
Property, plant and equipment	$	4		$	4
Less accumulated depreciation	(3		)	(3		)
Property, plant and equipment, net	$	1		$	1