Leases

Annual minimum rental commitments for all leases having an initial or remaining non-cancelable term of more than one year are shown below (in millions):



	Finance lease obligation		Capital lease		Operating lease¹
2019	$	18	$	63	$	3,528
2020	18		63		3,304
2021	18		62		3,028
2022	18		58		2,762
2023	18		57		2,522
Later	216		864		17,592
Total minimum lease payments	$	306	$	1,167	$	32,736


¹	Includes $1.6 billion of minimum rental commitments on closed locations

The capital and finance lease amounts include $813 million of imputed interest. Total minimum lease payments have not been reduced by minimum sublease rentals of $331 million due in the future under non-cancelable subleases.

The Company continuously evaluates its real estate portfolio in conjunction with its capital needs. Historically, the Company has entered into several sale-leaseback transactions. In fiscal 2018, the Company did not record any proceeds from sale-leaseback transactions. In fiscal 2017 and 2016, the Company recorded proceeds from sale-leaseback transactions of $444 million and $60 million, respectively.

In fiscal 2018, 2017 and 2016, the Company recorded charges of $129 million, $394 million and $127 million, respectively, for facilities that were closed or relocated. These charges are reported in selling, general and administrative expenses in the Consolidated Statements of Earnings.

The changes in liability for facility closings and related lease termination charges include the following (in millions):



	2018			2017
Balance at beginning of period	$	718		$	466
Provision for present value of non-cancelable lease payments on closed facilities	52			344
Changes in assumptions	19			13
Accretion expense	58			37
Other - non cash¹	338			—
Cash payments, net of sublease income	(221		)	(142		)
Balance at end of period	$	964		$	718


¹	Represents unfavorable lease liabilities from acquired Rite Aid stores.

The Company remains secondarily liable on 16 leases for which the maximum potential undiscounted future payments are $22 million at August 31, 2018. These lease option dates vary, with some lease terms extending up to 2039.

Rental expense, which includes common area maintenance, insurance and taxes, where appropriate, was as follows (in millions):



	2018			2017			2016
Minimum rentals	$	3,447		$	3,259		$	3,355
Contingent rentals	68			59			60
Less: sublease rental income	(67		)	(55		)	(49		)
	$	3,448		$	3,263		$	3,366