12. LEASES

We rent substantially all of our retail space under operating leases that generally range from 5 to 10 years and may contain minimum rent escalations, while kiosk leases generally range from 3 to 5 years. We also lease certain vehicles under capital leases for a term of four years. We recognize the minimum rent payments on a straight-line basis over the term of the lease, including the construction period. Contingent rentals paid to lessors of certain store facilities are determined principally on the basis of a percentage of sales in excess of levels contained in the respective leases. All existing real estate leases are operating leases. Rent expense from continuing operations is included in SG&A and is as follows (in thousands):

	Year Ended July 31,

	2013		2012		2011
Retail space:
Minimum rentals	$	183,266	$	184,239	$	188,766
Rentals based on sales		6,629		5,721		2,796

		189,895		189,960		191,562
Corporate headquarters		4,072		3,931		3,837

	$	193,967	$	193,891	$	195,399

Future minimum lease payments as of July 31, 2013, for all non-cancelable leases were as follows (in thousands):

Fiscal Year Ended	Capital Leases			Operating Leases

2014	$	1,184		$	173,782
2015		1,184			141,188
2016		590			112,318
2017		46			87,366
2018		—			60,340
Thereafter		—			140,806

	$	3,004		$	715,800

Less imputed interest		(154	)

Capital lease obligation	$	2,850