NOTE 12 – 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 December 31, 2019 and September 13, 2049.

The following table summarizes the components of rental expense charged for operating leases of open locations for fiscal years 2019, 2018 and 2017 (in thousands):



	Years Ended August 31,
	2019		2018		2017
Minimum rental payments	$	11,895	$	12,963	$	11,223
Deferred rent accruals		2,706		127		(80)
Total straight line rent expense		14,601		13,090		11,143
Contingent rental payments		3,568		3,399		3,320
Common area maintenance expense		704		723		1,174
Rental expense	$	18,873	$	17,212	$	15,637

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



	Leased
Years Ended August 31,	Locations(1)
2020	$	14,049
2021		13,272
2022		13,033
2023		13,065
2024		12,558
Thereafter		180,913
Total	$	246,890	(2)

⁽¹⁾

Operating lease obligations have been reduced by approximately $2.3 million to reflect expected sub-lease income. Certain obligations under leasing arrangements are collateralized by the underlying asset being leased.

⁽²⁾

Future minimum lease payments include $1.6 million of lease payment obligations for the prior leased Miami distribution center. For the purposes of calculating the minimum lease payments, a reduction is reflected for the actual sub-lease income the Company expects to receive during the remaining lease term. This sub-lease income was also considered, for the purposes of calculating the exit obligation, which was immaterial as of August 31, 2019.

The following table summarizes the components of rental income recorded for operating leases for fiscal years 2019, 2018 and 2017 (in thousands):



	Years Ended August 31,
	2019		2018		2017
Minimum rental receipts	$	2,924	$	2,750	$	2,654
Deferred rent accruals		8		(26)		(17)
Total straight line rent income		2,932		2,724		2,637
Contingent rental receipts		136		130		121
Common maintenance area income		186		155		141
Rental income	$	3,254	$	3,009	$	2,899

The Company is the 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, 2019 (in thousands):



Years Ended August 31,	Amount
2020	$	3,394
2021		2,964
2022		1,411
2023		1,127
2024		845
Thereafter		3,084
Total	$	12,825