LEASES

The Company is committed under non-cancelable operating leases for the rental of facilities and land. These leases expire or become subject to renewal between August 31, 2012 and July 5, 2031.

As of August 31, 2012, the Company’s warehouse clubs occupied a total of approximately 1,932,612 square feet of which 420,647 square feet were on leased property. The following is a summary of the warehouse clubs and Company facilities located on leased property:



			Approximate Square	Current Lease	Remaining Option(s)
Location	Facility Type	Date Opened	Footage	Expiration Date	to Extend
Via Brazil, Panama	Warehouse Club	December 4, 1997	68,696	October 31, 2026	10 years
Miraflores, Guatemala	Warehouse Club	April 8, 1999	66,059	December 31, 2020	5 years
Pradera, Guatemala	Warehouse Club	May 29, 2001	48,438	May 28, 2021	none
Tegucigalpa, Honduras	Warehouse Club	May 31, 2000	64,735	May 30, 2020	none
Oranjestad, Aruba	Warehouse Club	March 23, 2001	64,627	March 23, 2021	10 years
Port of Spain, Trinidad	Warehouse Club	December 5, 2001	54,046	July 5, 2031	none
St. Thomas, U.S.V.I.	Warehouse Club	May 4, 2001	54,046	February 28, 2020	10 years
Barbados	Storage Facility	May 5, 2006	4,800	May 31, 2013	1 year
Chaguanas, Trinidad	Employee Parking	May 1, 2009	4,944	April 30, 2024	none
Chaguanas, Trinidad	Container Parking	April 1, 2010	65,340	March 31, 2015	none
Santo Domingo, Dominican Republic	Central Offices	June 1, 2010	2,002	May 31, 2015	1 year
Bogota, Colombia	Central Offices	October 21, 2010	4,100	December 20, 2014	none
San Diego, CA	Corporate Headquarters	April 1, 2004	39,225	August 31, 2015	5 years
Miami, FL	Distribution Facility	March 1, 2008	274,652	July 31, 2021	10 years
Cali, Colombia	Temporary Offices	March 1, 2012	2,490	October 31, 2012	3 months
Panama	Storage and Distribution Facility	August 15, 2012	25,690	August 15, 2015	mutual agreement
Costa Rica	Storage and Distribution Facility	March 1, 2012	27,201	February 28, 2013	none

The following table summarizes the components of rental expense charged for operating leases of open locations for fiscal years 2012, 2011 and 2010 (in thousands):



	Years ended August 31,
	2012		2011		2010
Minimum rental payments	$	7,251	$	6,883	$	6,855
Deferred rent accruals	193		724		438
Total straight line rent expense	7,444		7,607		7,293
Contingent rental payments	2,623		2,070		1,561
Common area maintenance expense	865		792		920
Rental expense	$	10,932	$	10,469	$	9,774

Future minimum lease commitments for facilities under these leases with an initial term in excess of one year are as follows (in thousands):



Years Ended August 31,	Open Locations⁽¹⁾
2013	$	7,194
2014	7,125
2015	7,105
2016	6,297
2017	6,853
Thereafter	36,798
Total	$	71,372


(1)	Operating lease obligations have been reduced by approximately $965,000 to reflect sub-lease income. Certain obligations under leasing arrangements are collateralized by the underlying asset being leased.

The following table summarizes the components of rental income recorded for operating leases for fiscal years 2012, 2011 and 2010 (in thousands):



	Years ended August 31,
	2012			2011		2010
Minimum rental receipts	$	2,629		$	2,676	$	2,413
Deferred rent accruals	(69		)	104		184
Total straight line rent income	2,560			2,780		2,597
Contingent rental receipts	111			99		76
Common maintenance area income	109			60		51
Rental income	$	2,780		$	2,939	$	2,724

The Company entered into leases as landlord for rental of land and/or building space for properties it owns. The following is a schedule of future minimum rental income on non-cancelable operating leases with an initial term in excess of one year from owned property as of August 31, 2012 (in thousands):



Years ended August 31,	Amount
2013	$	2,297
2014	2,051
2015	1,810
2016	1,526
2017	843
Thereafter	4,407
Total	$	12,934