17.

Leases

and

Lease Guarantees

Leases

We lease land and buildings that are used in the operation of our Company - owned retail stores as well as in the operation of certain of our licensee - owned stores, and we lease land and buildings at various locations throughout the continental United States for warehousing and distribution hubs used in our logistical services segment. We also lease tractors, trailers and local delivery trucks used in our logistical services segment. Our real estate lease terms range from

one

years and generally have renewal options of between

five

and

years. Some store leases contain contingent rental provisions based upon sales volume. Our transportation equipment leases have terms ranging from

two

seven

years with fixed monthly rental payments plus variable charges based upon mileage. The following schedule shows future minimum lease payments under non - cancellable operating leases with terms in excess of

one

year as of

November

26,

2016:

	Retail Stores		Distribution Centers		Transportation Equipment		Total

Fiscal 2017	$	20,587	$	4,249	$	3,296	$	28,132
Fiscal 2018		18,559		3,015		2,010		23,584
Fiscal 2019		16,710		2,002		1,808		20,520
Fiscal 2020		15,415		1,301		1,743		18,459
Fiscal 2021		13,137		1,254		1,169		15,560
Thereafter		38,765		3,022		1,217		43,004
Total future minimum lease payments	$	123,173	$	14,843	$	11,243	$	149,259

Lease expense was

$31,867,

$26,382

and

$19,903

for

2016,

2015,

and

2014,

respectively.

In addition to subleasing certain of these properties, we own retail real estate which we in turn lease to licensee operators of BHF stores. We also own real estate for closed stores which we lease to non - licensees. The following schedule shows minimum future rental income related to pass - through rental expense on subleased property as well as rental income on real estate owned by Bassett.

Fiscal 2017	$	1,863
Fiscal 2018		1,337
Fiscal 2019		1,247
Fiscal 2020		1,194
Fiscal 2021		359
Thereafter		-
Total minimum future rental income	$	6,000

Real estate rental income (loss), net of expense (including lease costs, depreciation, insurance, and taxes), related to licensee stores and other investment real estate, was

$(59),

$(181)

and

$(248)

2016,

2015

and

2014,

respectively, and is reflected in other expense, net in the accompanying consolidated statements of income.

Guarantees

As part of the strategy for our store program, we have guaranteed certain lease obligations of licensee operators. Lease guarantees range from

one

three

years. We were contingently liable under licensee lease obligation guarantees in the amount of

$1,868

and

$2,494

November

26,

2016

and

November

28,

2015,

respectively.

In the event of default by an independent dealer under the guaranteed lease, we believe that the risk of loss is mitigated through a combination of options that include, but are not limited to, arranging for a replacement dealer, liquidating the collateral, and pursuing payment under the personal guarantees of the independent dealer. The proceeds of the above options are estimated to cover the maximum amount of our future payments under the guarantee obligations, net of reserves. The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at

November

26,

2016

and

November

28,

2015,

were not material.