16.

LEASES

The Company leases various warehouse and office facilities and certain equipment under operating and capital lease agreements that expire at various dates and in some instances contain renewal provisions. The Company expenses operating lease costs, including any scheduled rent increases, rent holidays or landlord concessions—on a straight-line basis over the lease term. The Company also has an unfunded lease obligation on a distribution facility through 2023.

Future minimum lease payments under the above mentioned noncancelable lease agreements, together with contractual sublease income, as of December 31, 2016, are as follows (in thousands):

	Unfunded Lease			Capital			Operating		Sublease
	Obligation			Leases			Leases		Income			Net
2017	$	4,269		$	64,276		$	32,197	$	(984	)	$	99,758
2018		4,269			82,163			26,630		(58	)		113,004
2019		4,663			60,520			26,127		(59	)		91,251
2020		4,809			51,992			25,039		(72	)		81,768
2021		4,809			39,390			20,601		(54	)		64,746
Thereafter		9,619			39,803			34,838		—			84,260
Total minimum lease payments (receipts)		32,438			338,144		$	165,432	$	(1,227	)	$	534,787
Less amount representing interest		(7,677	)		(32,600	)
Present value of minimum lease payments	$	24,761		$	305,544

Total operating lease expense, included in Distribution, selling and administrative costs in the Company’s Consolidated Statements of Comprehensive Income (Loss) was $43 million, $44 million and $44 million in fiscal years 2016, 2015 and 2014, respectively.