XML 33 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Leases
6 Months Ended
Sep. 08, 2018
Leases [Abstract]  
Lessee And Lessor Lease Disclosure
On May 9, 2018, we received $382 in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of seven of our distribution centers as part of our previously announced agreement to sell eight of our owned distribution centers. Subject to customary closing conditions, the sale of the eighth distribution center is expected to close in the third quarter of fiscal 2019 and generate $101 of proceeds. For the distribution centers sold, we have entered into lease agreements with initial terms of 20 years with five, five-year renewal options that qualified for sale-leaseback accounting and have been classified as operating leases. In the first quarter of fiscal 2019, we deferred a $91 gain on the sale of the seven distribution centers, which is classified in Other long-term liabilities and Other current liabilities.
We lease most of our 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. Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following:
 
Second Quarter Ended
 
Year-To-Date Ended
 
September 8, 
 2018 
 (12 weeks)
 
September 9, 
 2017 
 (12 weeks)
 
September 8, 
 2018 
 (28 weeks)
 
September 9, 
 2017 
 (28 weeks)
Minimum rent
$
29

 
$
26

 
$
67

 
$
53

Contingent rent
1

 

 
1

 
1

Rent expense(1)
30

 
26

 
68

 
54

Less subtenant rentals
(8
)
 
(7
)
 
(18
)
 
(15
)
Total net rent expense
$
22

 
$
19

 
$
50

 
$
39

(1)
Rent expense as presented here includes $1 and $3 in the second quarters of fiscal 2019 and 2018, respectively, and $4 and $7 for fiscal 2019 and 2018 year-to-date, respectively, of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the historical expense to be included within continuing operations, as we expect to remain primarily obligated under these leases.
Future minimum lease payments to be made by us or certain third parties in the case of assigned leases for noncancellable operating leases and capital leases as of September 8, 2018 consisted of the amounts presented in the following table. These amounts have not been reduced for future minimum subtenant rentals under certain operating subleases, including assignments.
 
Lease Obligations
Fiscal Year
Operating Leases
 
Capital Leases
Remaining Fiscal 2019
$
44

 
$
17

2020
112

 
37

2021
108

 
33

2022
94

 
30

2023
82

 
23

Thereafter
838

 
84

Total future minimum obligations
$
1,278

 
224

Less interest
 
 
(66
)
Present value of net future minimum obligations
 
 
158

Less current capital lease obligations
 
 
(24
)
Long-term capital lease obligations
 
 
$
134


We lease certain property to third parties under operating, capital and direct financing leases, including assigned leases for which we have future minimum lease payment obligations that are included in the table above. Future minimum lease and subtenant rentals to be received under noncancellable operating and deferred financing income leases, under which we are the lessor, as of September 8, 2018, consisted of the following:
 
Lease Receipts
Fiscal Year
Operating Leases
 
Direct Financing Leases
Remaining Fiscal 2019
$
10

 
$

2020
24

 
1

2021
20

 

2022
18

 

2023
11

 

Thereafter
32

 

Total minimum lease receipts
$
115

 
$
1