Commitments and Contingencies

We are involved in various legal and environmental matters, which arise in the normal course of business. Although the final outcome of these matters cannot be determined, based on the facts presently known, we believe that the final resolution of these matters will

not

have a material adverse effect on our financial position or future results of operations.

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 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

March 2, 2019:

	Retail Stores		Warehousing & Distribution Centers		Transportation Equipment		All Other		Total

Remainder of fiscal 2019	$	18,162	$	3,697	$	3,242	$	1,302	$	26,403
Fiscal 2020		23,378		4,442		4,206		1,637		33,663
Fiscal 2021		20,674		3,833		3,051		970		28,528
Fiscal 2022		18,166		3,539		2,151		487		24,343
Fiscal 2023		15,964		2,108		1,272		-		19,344
Fiscal 2024		12,096		532		974		-		13,602
Thereafter		37,870		-		356		-		38,226
Total future minimum lease payments	$	146,310	$	18,151	$	15,252	$	4,396	$	184,109

In connection with our long-term real estate leases, our liability for accrued straight-line rent expense was

$6,227

and

$5,844

March 2, 2019

and

November 24, 2018,

respectively, and is included in other current liabilities and accrued expenses in our condensed 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

$7,519

and

$6,716

March 2, 2019

and

November 24, 2018,

respectively, with the non-current portion of

$6,410

and

$5,715,

respectively, included in other long term liabilities in our condensed consolidated balance sheets and the remaining current portion included in other current liabilities and accrued expenses. At

March 2, 2019

and

November 24, 2018

prepaid rent of

$2,893

and

$245,

respectively, was included in other current assets in our condensed consolidated balance sheets.

We also have guaranteed certain lease obligations of licensee operators. Lease guarantees range from

one

ten

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

$1,953

and

$2,021

March 2, 2019

and

November 24, 2018,

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 or liquidating the collateral (primarily inventory). The proceeds of the above options are expected to cover the estimated amount of our future payments under the guarantee obligations, net of recorded reserves. The fair value of lease guarantees (an estimate of the cost to the Company to perform on these guarantees) at

March 2, 2019

and

November 24, 2018

was

not

material.