NOTE 11 – OPERATING LEASES AND OTHER COMMITMENTS

We lease various facilities under noncancellable lease agreements which expire at various dates through fiscal 2041. In addition to stated minimum payments, certain real estate leases have provisions for contingent rentals when retail sales exceed specified levels. Generally, the leases provide for renewal for various periods at stipulated rates. Most of the facilities’ leases require payment of property taxes, insurance and maintenance costs in addition to rental payments, and several provide an option to purchase the property at the end of the lease term.

In recent years, we have entered into agreements for the sale/leaseback of certain stores. Realized gains are deferred and are credited to income as rent expense adjustments over the lease terms. We have lease renewal options under the real estate agreements at projected future fair market values.

Future minimum payments required under noncancellable leases (including closed stores) are as follows:



			Less -
			Sublease
Year Ending Fiscal March	Leases		Income		Net
	(Dollars in thousands)
2018	$	35,668	$	(91)	$	35,577
2019		29,188		(68)		29,120
2020		23,081		(73)		23,008
2021		18,362		(74)		18,288
2022		13,280		(78)		13,202
Thereafter		35,281		(306)		34,975
Total	$	154,860	$	(690)	$	154,170

Rent expense under operating leases, net of sublease income, totaled $38,628,000, $36,717,000 and $35,848,000 in fiscal 2017, 2016 and 2015, respectively, including contingent rentals of $46,000, $59,000 and $44,000 in each respective fiscal year. Sublease income totaled $130,000, $149,000 and $161,000, respectively, in fiscal 2017, 2016 and 2015.

We enter into contracts with parts and tire suppliers, certain of which require us to buy (at market competitive prices) up to 100% of our annual purchases of specific products. The agreements expire at various dates. We believe these agreements provide us with high quality, branded merchandise at preferred pricing, along with strong marketing and training support.