LEASES

The Company is committed under non-cancelable operating leases for the rental of facilities and land. These leases expire or become subject to renewal between January 29, 2015 and January 29, 2044.

As of August 31, 2014, the Company’s warehouse clubs occupied a total of approximately 2,294,820 square feet of which 420,647 square feet were on leased property. The following is a summary of the warehouse clubs and Company facilities located on leased property:



			Approximate Square	Current Lease	Remaining Option(s)
Location	Facility Type	Date Opened	Footage	Expiration Date	to Extend
Salitre, Colombia ⁽¹⁾	Warehouse Club	Under Construction⁽²⁾	—	January 29, 2044	20 years
Via Brazil, Panama	Warehouse Club	December 4, 1997	68,696	October 31, 2026	10 years
Miraflores, Guatemala	Warehouse Club	April 8, 1999	66,059	December 31, 2020	5 years
Pradera, Guatemala	Warehouse Club	May 29, 2001	48,438	May 28, 2021	none
Tegucigalpa, Honduras	Warehouse Club	May 31, 2000	64,735	May 30, 2020	none
Oranjestad, Aruba	Warehouse Club	March 23, 2001	64,627	March 23, 2021	10 years
Port of Spain, Trinidad	Warehouse Club	December 5, 2001	54,046	July 5, 2031	none
St. Thomas, U.S.V.I.	Warehouse Club	May 4, 2001	54,046	February 28, 2020	10 years
Barbados	Storage Facility	December 1, 2012	12,517	November 30, 2015	3 years
Chaguanas, Trinidad	Employee Parking	May 1, 2009	4,944	April 30, 2024	none
Chaguanas, Trinidad	Container Parking	April 1, 2010	65,340	March 31, 2015	none
Jamaica	Storage Facility	September 1, 2012	17,000	February 28, 2015	3 years
Santo Domingo, Dominican Republic	Central Offices	June 1, 2010	2,002	May 31, 2015	1 year
Bogota, Colombia	Central Offices	October 21, 2010	7,812	December 31, 2015	none
San Diego, CA ⁽³⁾	Corporate Headquarters	April 1, 2004	39,225	August 31, 2015	5 years
Miami, FL ⁽⁴⁾	Distribution Facility	March 1, 2008	274,652	July 31, 2021	10 years
Panama	Storage and Distribution Facility	August 15, 2012	25,690	August 15, 2015	mutual agreement
Panama	Central Offices	Under Construction⁽²⁾	—	December 12, 2043	15 years
Costa Rica	Storage and Distribution Facility	January 28, 2013	37,674	January 29, 2015	3 years
Trinidad	Storage and Distribution Facility	August 18, 2014	17,110	August 17, 2017	none

⁽¹⁾

For the fiscal year 2014, the Company recorded expenses related to the property lease for the new club planned for Bogota, Colombia ("Salitre") as pre-opening expenses. The Company will continue to record the monthly lease expense for this land in pre-opening expenses while the warehouse club is under construction. Upon opening, these expenses will be recognized in warehouse club operations expense.


⁽²⁾	The Company opened this location on October 29, 2014.


⁽³⁾	In September 2014, the Company executed a third amendment to include an additional 3,802 square feet of space and an extension on the term of the existing premises at its corporate headquarters. This additional space is not included within the above table.


⁽⁴⁾	In September 2014, the Company executed a second amendment to include an additional 26,400 square feet of space at its primary distribution center in Miami. This additional space is not included within the above table.

The following table summarizes the components of rental expense charged for operating leases of open locations for fiscal years 2014, 2013 and 2012 (in thousands):



	Years ended August 31,
	2014		2013		2012
Minimum rental payments	$	7,952	$	7,584	$	7,251
Deferred rent accruals	1,514		104		193
Total straight line rent expense	9,466		7,688		7,444
Contingent rental payments	3,220		2,950		2,623
Common area maintenance expense	1,212		1,074		865
Rental expense	$	13,898	$	11,712	$	10,932

Future minimum lease commitments for facilities under these leases with an initial term in excess of one year are as follows (in thousands):



Years Ended August 31,	Leased Locations⁽¹⁾
2015	$	9,156
2016	8,468
2017	9,429
2018	9,411
2019	9,129
Thereafter	89,988
Total	$	135,581	⁽²⁾


⁽¹⁾	Operating lease obligations have been reduced by approximately $517,000 to reflect sub-lease income. Certain obligations under leasing arrangements are collateralized by the underlying asset being leased.

⁽²⁾

The future minimum lease commitments have been reduced by approximately $517,000 to reflect the amounts net of sublease income. Additionally, during September 2014, the Company executed an amendment to include an additional 3,802 square feet of space and an extension on the term through May 2026 of the existing premises at the Company's corporate headquarters, adding lease obligations of approximately $11.8 million. In September 2014, the Company also executed an amendment to include an additional 26,400 square feet of space at its primary distribution center in Miami, adding lease obligations of approximately $1.0 million. The lease obligations for these two lease amendments are not included within the above table.

The following table summarizes the components of rental income recorded for operating leases for fiscal years 2014, 2013 and 2012 (in thousands):



	Years ended August 31,
	2014		2013		2012
Minimum rental receipts	$	2,646	$	2,620	$	2,629
Deferred rent accruals	187		26		(69		)
Total straight line rent income	2,833		2,646		2,560
Contingent rental receipts	59		98		111
Common maintenance area income	129		117		109
Rental income	$	3,021	$	2,861	$	2,780

The Company entered into leases as landlord for rental of land and/or building space for properties it owns. The following is a schedule of future minimum rental income on non-cancelable operating leases with an initial term in excess of one year from owned property as of August 31, 2014 (in thousands):



Years ended August 31,	Amount
2015	$	2,643
2016	2,206
2017	1,317
2018	1,055
2019	853
Thereafter	6,763
Total	$	14,837