LEASES

The Company leases stores, office space and warehouses under various leasing arrangements. As of January 27, 2017, the Company leases store space in 216 Sears Holdings store locations (see Note 11, Related Party Agreements and Transactions) and 12 Lands’ End Stores. The total number of retail stores, 230, includes two Lands’ End stores that are owned by the Company which have no required minimum lease payments. All leases are accounted for as operating leases. Operating lease obligations are based upon contractual minimum rents. Certain leases include renewal options.

Total rental expense under operating leases was $30.6 million, $31.1 million and $32.0 million for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively.

Total future commitments under these operating leases (primarily leased Lands’ End Shops at Sears space at Sears Holdings locations as described in Note 11, Related Party Agreements and Transactions) as of January 27, 2017 are as follows for the fiscal years ending (in thousands):



2017	$	27,881
2018	18,663
2019	12,199
2020	2,180
2021	1,574
Thereafter	2,721