LEASES (Tables)

12 Months Ended

Aug. 31, 2015

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	October 29, 2014	98,566	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, 2016	3 years
Santo Domingo, Dominican Republic	Central Offices	June 1, 2010	2,002	May 31, 2016	1 year
Bogota, Colombia	Central Offices	October 21, 2010	7,812	December 31, 2015	none
San Diego, CA ⁽²⁾	Corporate Headquarters	April 1, 2004	43,027	May 31, 2026	5 years
Miami, FL ^{(3) (4)}	Distribution Facility	March 1, 2008	371,476	July 31, 2021	10 years
Panama	Central Offices	November 4, 2014	17,975	December 12, 2028	15 years
Costa Rica	Storage and Distribution Facility	January 28, 2013	37,674	January 29, 2016	3 years
Trinidad	Storage and Distribution Facility	August 18, 2014	17,110	August 17, 2017	none


⁽¹⁾	For the fiscal year 2015, the Company recorded expenses related to the property lease for the new club constructed for Bogota, Colombia ("Salitre") as pre-opening expenses through October 2014, the date the warehouse club was opened. Upon opening, these expenses are now recognized in warehouse club operations expense.

⁽²⁾

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. In January 2015, the Company executed a fourth amendment to include 2,799 square feet of space, in which the Company sub-leased all 2,799 square feet of space to another party through June 2016. The 2,799 square feet of space is not included in the above table.


⁽³⁾	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. Additionally, in September 2014, the Company executed a third amendment to include an additional 70,424 square feet of space at its primary distribution center in Miami.


⁽⁴⁾	The Company included the lease extensions of 10 years in the calculation of future minimum lease commitments.

Schedule of Rent Expense

The following table summarizes the components of rental expense charged for operating leases of open locations for fiscal years 2015, 2014 and 2013 (in thousands):



	Years ended August 31,
	2015		2014		2013
Minimum rental payments	$	10,074	$	7,952	$	7,584
Deferred rent accruals	1,355		1,514		104
Total straight line rent expense	11,429		9,466		7,688
Contingent rental payments	3,137		3,220		2,950
Common area maintenance expense	1,321		1,212		1,074
Rental expense	$	15,887	$	13,898	$	11,712

Schedule of Future Minimum Rental Payments

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⁾
2016	$	7,540
2017	10,436
2018	10,576
2019	10,281
2020	9,950
Thereafter	96,137
Total	$	144,920


⁽¹⁾	Operating lease obligations have been reduced by approximately $275,000 to reflect sub-lease income. Certain obligations under leasing arrangements are collateralized by the underlying asset being leased.

Schedule of Rent Income

The following table summarizes the components of rental income recorded for operating leases for fiscal years 2015, 2014 and 2013 (in thousands):



	Years ended August 31,
	2015		2014		2013
Minimum rental receipts	$	2,873	$	2,646	$	2,620
Deferred rent accruals	47		187		26
Total straight line rent income	2,920		2,833		2,646
Contingent rental receipts	86		59		98
Common maintenance area income	148		129		117
Rental income	$	3,154	$	3,021	$	2,861

Schedule of Future Minimum Rental Receipts

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, 2015 (in thousands):



Years ended August 31,	Amount
2016	$	2,268
2017	1,379
2018	1,086
2019	885
2020	759
Thereafter	6,033
Total	$	12,410

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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