The Company leases certain store real estate, warehouses, distribution centers, office space and equipment. The Company operates in leased facilities in approximately half of its store locations. Lease terms generally range from 10 to 20 years with options to renew for varying terms at the Company’s sole discretion. Certain leases also include options to purchase the leased property. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Certain leases include escalation clauses or payment of executory costs such as property taxes, utilities or insurance and maintenance. Rent expense for leases with escalation clauses or other lease concessions are accounted for on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Certain properties or portions thereof are subleased to others for periods generally ranging from one to 20 years.

The following table provides supplemental balance sheet classification information related to leases:

(1)

Finance lease assets are recorded net of accumulated amortization of $321 and $276 as of January 30, 2021 and February 1, 2020.

The following table provides the components of lease cost:


		Year-To-Date		Year-To-Date
Lease Cost	Classification		January 30, 2021	February 1, 2020
Operating lease cost⁽¹⁾	Rent Expense	$	981	$	1,000
Sublease and other rental income	Rent Expense		(107)		(116)
Finance lease cost
Amortization of leased assets	Depreciation and Amortization		55		53
Interest on lease liabilities	Interest Expense		45		48

Net lease cost		$	974	$	985

(1)

Includes short-term leases and variable lease costs, which are immaterial.

Maturities of operating and finance lease liabilities are listed below. Amounts in the table include options to extend lease terms that are reasonably certain of being exercised.


	Operating		Finance
	Leases		Leases		Total
2021	$	947	$	109	$	1,056
2022		865		97		962
2023		790		95		885
2024		717		93		810
2025		653		92		745
Thereafter		6,260		935		7,195

Total lease payments		10,232		1,421	$	11,653

Less amount representing interest		3,058		418

Present value of lease liabilities⁽¹⁾	$	7,174	$	1,003

(1)

Includes the current portion of $667 for operating leases and $67 for finance leases.

Total future minimum rentals under non-cancellable subleases at January 30, 2021 were $261.

The following table provides the weighted-average lease term and discount rate for operating and finance leases:



	January 30, 2021		February 1, 2020
Weighted-average remaining lease term (years)
Operating leases	15.3		16.0
Finance leases	16.2		15.3
Weighted-average discount rate
Operating leases	4.2	%	4.3	%
Finance leases	4.4	%	5.4	%

The following table provides supplemental cash flow information related to leases:


	Year-To-Date		Year-To-Date
	January 30, 2021		February 1, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	849	$	942
Operating cash flows from finance leases		45		48
Financing cash flows from finance leases		37		45
Leased assets obtained in exchange for new operating lease liabilities		679		849
Leased assets obtained in exchange for new finance lease liabilities		190		233
Net gain recognized from sale and leaseback transactions⁽¹⁾		39		58
Impairment of operating lease assets⁽²⁾		4		81
Impairment of finance lease assets		2		40

(1)

In 2020, the Company entered into sale leaseback transactions related to seven properties, which resulted in total proceeds of $78. In 2019, the Company entered into sale leaseback transactions related to nine properties, which resulted in total proceeds of $113.

(2)

In 2019, impairment of operating lease assets includes $11 related to Lucky’s Market.