Leases

The Company leases retail stores under non-cancelable operating leases, which generally have lease terms ranging from three to ten years. Most of these lease arrangements do not provide for renewal periods; however, management expects that in the normal course of business, expiring leases will generally be renewed or, upon making a decision to relocate, replaced by leases at other premises. The Company recognizes rent expense for minimum lease payments on a straight-line basis over the expected lease term, including rent holidays, rent escalation clauses, and/or cancelable option periods where failure to exercise such options would result in an economic penalty. In addition, the commencement date of the lease term is the earlier of the date when the Company becomes legally obligated for the rent payments or the date when the Company takes possession of the leased space for build-out.

In addition to rent payments, leases generally require additional payments covering real estate taxes, insurance, maintenance, and other costs. These additional payments are excluded from the table below. The components of rent expense incurred under these leases are as follows for each of the following fiscal years (in thousands):



	2017		2016		2015
Minimum rent	$	103,935	$	102,916	$	95,524
Contingent rent	34,397		28,560		30,069
Rent expense	$	138,332	$	131,476	$	125,593

A schedule of future base rent payments by fiscal year with initial or remaining non-cancelable terms of one year or more is as follows (in thousands):



2018	$	122,914
2019	115,564
2020	107,801
2021	102,650
2022	97,112
Thereafter	176,710
Total	$	722,751

The lease commitments in the table above include the guaranteed minimum license fee associated with shops within department stores.