16.	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 retail and logistical services segments. We also lease tractors and trailers used in our logistical services segment and local delivery trucks and service vans used in our retail 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 24, 2018:

	Retail Stores		Warehousing & Distribution Centers		Transportation Equipment		All Other		Total

Fiscal 2019	$	23,631	$	4,999	$	3,398	$	1,693	$	33,721
Fiscal 2020		23,073		4,127		3,193		1,637		32,030
Fiscal 2021		20,597		3,274		2,176		970		27,017
Fiscal 2022		18,166		3,097		1,444		487		23,194
Fiscal 2023		15,964		1,785		637		-		18,386
Thereafter		50,117		437		558		-		51,112
Total future minimum lease payments	$	151,548	$	17,719	$	11,406	$	4,787	$	185,460

Lease expense was

$38,970,

$34,372

and

$31,867

for

2018,

2017,

and

2016,

respectively. Lease expense for leases with escalating minimum payments over the lease term is recognized on a straight-line basis. Our liability for accrued straight-line rent expense was

$5,844

and

$4,821

November 24, 2018

and

November 25, 2017,

respectively, and is included in other accrued liabilities in our consolidated balance sheets. Improvement allowances received from lessors at the inception of a lease are deferred and amortized over the term of the lease. The unamortized balance of such amounts was

$6,716

and

$5,264

November 24, 2018

and

November 25, 2017,

respectively, with the non-current portion of

$5,715

and

$4,504,

respectively, included in other liabilities in our consolidated balance sheets and the remaining current portion included in other accrued liabilities.

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 2019	$	1,765
Fiscal 2020		1,632
Fiscal 2021		781
Fiscal 2022		422
Fiscal 2023		105
Thereafter		-
Total minimum future rental income	$	4,705

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

$23,

$48

and

$59

2018,

2017

and

2016,

respectively, and is reflected in other loss, 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

$2,021

and

$2,743

November 24, 2018

and

November 25, 2017,

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 24, 2018

and

November 25, 2017,

were

not

material.