Nordstrom 2009 Annual Report Download - page 58

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50
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts
NOTE 8: LEASES
We lease the land or the land and buildings at many of our full-line stores, and we lease the buildings at many of our Rack 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. Our fixed, non-cancelable lease terms are generally 20 to 30 years for full-line stores and 10 to 15 years for 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.
Future minimum lease payments as of January 30, 2010 are as follows:
Fiscal year Capital Leases Operating Leases
2010 $2 $98
2011 2 101
2012 2 89
2013 2 82
2014 2 78
Thereafter 7 406
Total minimum lease payments 17 $854
Less amount representing interest (5)
Present value of net minimum lease payments $12
Rent expense for 2009, 2008 and 2007 was as follows:
Fiscal year 2009 2008 2007
Minimum rent:
Store locations $76 $63 $67
Offices, warehouses and equipment 13 13 14
Percentage rent — store locations 9 9 14
Property incentives — store locations (55) (48) (47)
Total rent expense $43 $37 $48
The rent expense above does not include common area maintenance costs which were $19 in each of 2009, 2008 and 2007.