NOTE 7—LEASES

The Company 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, to a limited extent, include options to purchase. Future minimum lease payments to be made by the Company for noncancellable operating leases and capital leases as of February 22, 2014, consist of the following:


	Lease Obligations
Fiscal Year	Operating Leases		Capital Leases
2015	$	122	$	51
2016		116		48
2017		99		44
2018		79		41
2019		60		39
Thereafter		150		169

Total future minimum obligations	$	626		392

Less interest				(119	)

Present value of net future minimum obligations				273
Less current capital lease obligations				(27	)

Long-term capital lease obligations			$	246

Total future minimum obligations have not been reduced for future minimum subtenant rentals of $69 under certain operating subleases.

Rent expense and subtenant rentals under operating leases consisted of the following:


	2014			2013			2012
Minimum rent	$	129		$	127		$	118
Contingent rent		5			6			2

Rent expense		134			133			120
Subtenant rentals		(13	)		(13	)		(15	)

Total net rent expense	$	121		$	120		$	105

The Company leases certain property to third parties under both operating and direct financing leases. Under the direct financing leases, the Company leases buildings to independent retail customers with terms ranging from one to six years. Future minimum lease and subtenant rentals under noncancellable leases as of February 22, 2014, consist of the following:


	Lease Receipts
Fiscal Year	Operating Leases		Direct Financing Leases
2015	$	3	$	2
2016		2		2
2017		2		1
2018		2		—
2019		1		—
Thereafter		1		—

Total minimum lease receipts	$	11		5

Less unearned income				(1	)

Net investment in direct financing leases				4
Less current portion				(1	)

Long-term portion			$	3

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


	2014			2013
Property, plant and equipment	$	4		$	4
Less accumulated depreciation		(3	)		(3	)

Property, plant and equipment, net	$	1		$	1