NOTE 11 – 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 November 30, 2018 and January 29, 2044.

The following table summarizes the components of rental expense charged for operating leases of open locations for fiscal years 2018, 2017 and 2016 (in thousands):



	Years Ended August 31,
	2018		2017		2016
Minimum rental payments	$	12,963	$	11,223	$	9,986
Deferred rent accruals		127		(80)		1,363
Total straight line rent expense		13,090		11,143		11,349
Contingent rental payments		3,399		3,320		3,208
Common area maintenance expense		723		1,174		1,369
Rental expense	$	17,212	$	15,637	$	15,926

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



	Leased
Years Ended August 31,	Locations(1)
2019	$	14,062
2020		12,366
2021		11,465
2022		11,382
2023		11,628
Thereafter		137,343
Total	$	198,246	(2)(3)

⁽¹⁾

Operating lease obligations have been reduced by approximately $3.3 million to reflect expected sub-lease income. Certain obligations under leasing arrangements are collateralized by the underlying asset being leased.

⁽²⁾

Future minimum lease payments include $2.4 million of lease payment obligations for the prior leased Miami distribution center. For the purposes of calculating the minimum lease payments, a reduction is reflected for the actual sub-lease income the Company expects to receive during the remaining lease term. This sub-lease income was also considered, for the purposes of calculating the exit obligation, which was immaterial as of August 31, 2018.

⁽³⁾

In March 2018, the Company acquired Aeropost, Inc., which provides logistics, payment and e-commerce services in Latin America and the Caribbean. Aeropost currently serves customers in 38 countries with Costa Rica, Trinidad and Jamaica as its largest markets. Aeropost leases and operates small retail stores that enable customers to pick up and pay for merchandise. Future minimum lease payments includes amounts related to these small retail locations, Aeropost Corporate Headquarters, central offices and distribution facilities.

The following table summarizes the components of rental income recorded for operating leases for fiscal years 2018, 2017 and 2016 (in thousands):



	Years Ended August 31,
	2018		2017		2016
Minimum rental receipts	$	2,750	$	2,654	$	2,735
Deferred rent accruals		(26)		(17)		56
Total straight line rent income		2,724		2,637		2,791
Contingent rental receipts		130		121		112
Common maintenance area income		155		141		151
Rental income	$	3,009	$	2,899	$	3,054

The Company is the 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, 2018 (in thousands):



Years Ended August 31,	Amount
2019	$	3,304
2020		3,089
2021		2,743
2022		1,237
2023		973
Thereafter		3,638
Total	$	14,984