LEASES

The Company leases stores, office space and warehouses under various leasing arrangements. As of February 2, 2018, the Retail segment leases store space in 174 Sears Holdings store locations (see Note 11, Related Party Agreements and Transactions) and 12 Lands' End Stores. The Direct segment leases one Lands' End school uniform store. The total number of stores, 189, 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 $27.2 million, $30.6 million and $31.1 million for Fiscal 2017, Fiscal 2016 and Fiscal 2015, 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 February 2, 2018 are as follows for the fiscal years ending (in thousands):



2018	$	21,597
2019	12,936
2020	4,433
2021	3,570
2022	2,721
Thereafter	3,514
Total minimum payments required⁽¹⁾	48,771

⁽¹⁾ Minimum payments have not been reduced by minimum sublease rentals of $4.4 million due in the future under noncancelable subleases.

The following table summarizes the fiscal years in which the remaining Lands' End Shops at Sears stores are currently contracted to expire during:



	Number of Stores
Fiscal 2018	94
Fiscal 2019	80