PROPERTY AND LEASES

Net Property and Equipment

The components of net property and equipment follow.



in millions	January 28, 2018		January 29, 2017
Land	$	8,352	$	8,207
Buildings	18,073		17,772
Furniture, fixtures and equipment	11,506		11,020
Leasehold improvements	1,637		1,519
Construction in progress	538		739
Capital leases	1,308		1,169
Property and equipment, at cost	41,414		40,426
Less accumulated depreciation and amortization	19,339		18,512
Net property and equipment	$	22,075	$	21,914

Leases

We lease certain retail locations, office space, warehouse and distribution space, equipment, and vehicles. While most of the leases are operating leases, certain locations and equipment are leased under capital leases. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we will renew or replace the lease. Short-term and long-term obligations for capital leases are included in the applicable long-term debt category based on maturity.

Assets under capital leases (net of amortization) recorded in net property and equipment follow.



in millions	January 28, 2018		January 29, 2017
Capital leases, net	$	821	$	730

Certain lease agreements include escalating rents over the lease terms. Real estate taxes, insurance, maintenance, and operating expenses applicable to the leased property are our obligations under the lease agreements. We expense rent on a straight-line basis over the lease term, which commences on the date we have the right to control the property. The cumulative expense recognized on a straight-line basis in excess of the cumulative payments is included in other accrued expenses and other long-term liabilities.

Our total rent expense follows.



in millions	Fiscal		Fiscal		Fiscal
in millions	2017		2016		2015
Total rent expense	$	1,053	$	984	$	922

The approximate future minimum lease payments under capital and operating leases at January 28, 2018 follow.



in millions	Operating Leases		Capital Leases
Fiscal 2018	$	921	$	147
Fiscal 2019	869		142
Fiscal 2020	786		156
Fiscal 2021	696		132
Fiscal 2022	580		132
Thereafter through fiscal 2097	3,286		1,044
	$	7,138	1,753
Less imputed interest			769
Net present value of capital lease obligations			984
Less current installments			52
Long-term capital lease obligations, excluding current installments			$	932