Annual report pursuant to Section 13 and 15(d)

Leases

v2.4.0.6
Leases
12 Months Ended
Jan. 28, 2012
Leases [Abstract]  
Leases

15) Leases

We conduct the major part of our operations from leased premises that include retail stores, store distribution centers, warehouses, offices and other facilities. Almost all leases will expire during the next 20 years; however, most leases will be renewed, primarily through an option exercise, or replaced by leases on other premises. We also lease data processing equipment and other personal property under operating leases of primarily three to five years. Rent expense, net of sublease income, was as follows:

Rent Expense

 

 

 

 

 

($ in millions)

2011

 

2010

 

2009

 

Real property base rent and straight-lined step rent expense

$                243

$                244

$                252

Real property contingent rent expense (based on sales)

                   16

                    16

                    14

Personal property rent expense

                   64

                    61

                    59

 

 

 

 

Total rent expense

$                323

$                321

$                325

Less: sublease income(1)

                   (18)

                   (17)

                  (21)

 

 

 

 

Net rent expense

$                305

$                304

$                304

 

 

 

 

 

(1)     Sublease income is reported in real estate and other, net.

As of January 28, 2012, future minimum lease payments for non-cancelable operating leases, including lease renewals determined to be reasonably assured and capital leases were as follows:

 

 

 

 

($ in millions)

Operating

 

Capital

 

2012

$                260

$                1

2013

                  224

                  1

2014

                  194

                  1

2015

                  167

                  1

2016

                  144

                  -

Thereafter

               1,927

                  -

Less: sublease payments

                  (38)

                  -

 

 

 

Total minimum lease payments

$            2,878

$                4

 

 

 

Present value

$            1,282

$                3

Weighted-average interest rate

                  7.9%

              8.5%