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 30, 2017, are as follows (in thousands):

		Unfunded Lease			Capital			Operating		Sublease
		Obligation			Leases			Leases		Income			Net
	2018	$	4,269		$	97,324		$	32,623	$	(461	)	$	133,755
	2019		4,663			74,438			31,181		(479	)		109,803
	2020		4,809			65,936			29,204		(133	)		99,816
	2021		4,809			53,310			24,424		(22	)		82,521
	2022		4,809			36,687			21,285		—			62,781
Thereafter			4,809			39,311			24,017		—			68,137
Total minimum lease payments (receipts)			28,168			367,006		$	162,734	$	(1,095	)	$	556,813
Less amount representing interest			(5,830	)		(30,403	)
Present value of minimum lease payments		$	22,338		$	336,603

Total operating lease expense, included in distribution, selling and administrative costs in the Company’s Consolidated Statements of Comprehensive Income was $44 million, $43 million and $44 million in fiscal years 2017, 2016 and 2015, respectively.