Operating Leases

The Company conducts part of its operations from facilities that are leased under non-cancelable lease agreements. Lease agreements generally contain a primary term of five to 30 years with options to renew or extend the lease from one to 25 years. As of August 29, 2018, the Company has lease agreements for 88 properties which include the Company’s corporate office, facility service warehouse, two remote office spaces, and restaurant properties. The leasing terms of the 88 properties consist of 13 properties expiring in less than one year, 50 properties expiring between one and five years and the remaining 25 properties having current terms that are greater than five years. Of the 88 leased properties, 74 properties have options remaining to renew or extend the lease.

A majority of the leases include periodic escalation clauses. Accordingly, the Company follows the straight-line rent method of recognizing lease rental expense.

As of August 29, 2018, the Company has entered into noncancelable operating lease agreements for certain office equipment with terms ranging from 36 to 60 months.

Annual future minimum lease payments under noncancelable operating leases with terms in excess of one year as of August 29, 2018 are as follows:



Fiscal Year Ending:	(In thousands)
August 28, 2019	$	10,790
August 26, 2020	8,572
August 25, 2021	6,892
August 31, 2022	5,522
August 30, 2023	4,399
Thereafter	16,640
Total minimum lease payments	$	52,815

Most of the leases are for periods of five to 30 years and some leases provide for contingent rentals based on sales in excess of a base amount. As of August 29, 2018, aggregate future minimum rentals to be received under non-cancelable subleases was approximately $3.9 million.

Total rent expense for operating leases for fiscal 2018, 2017, and 2016 was as follows:



	Year Ended
	August 29, 2018			August 30, 2017			August 31, 2016
	(In thousands, except percentages)
Minimum rent-facilities	$	10,584		$	11,849		$	12,341
Contingent rentals	77			86			164
Minimum rent-equipment	801			758			712
Total rent expense (including amounts in discontinued operations)	$	11,462		$	12,693		$	13,217
Percent of sales	3.1		%	3.4		%	3.3		%

The future minimum lease payment table and the total rent expense table above include amounts related to two leases with related parties, which are further described at Note 17. Related Parties.