The Company leases most of its retail stores and certain distribution facilities under noncancellable operating and capital leases, most of which have initial lease terms ranging from 5 to 22 years. The Company also leases certain of its equipment and other assets under noncancellable operating leases with initial terms ranging from 3 to 22 years. In addition to minimum rental payments, certain store leases require additional payments based on sales volume, as well as reimbursements for taxes, maintenance and insurance. Most leases contain renewal options, certain of which involve rent increases. Total rental expense, net of sublease income of $8,866, $9,662, and $11,027, was $976,892, $965,665 and $961,519 in fiscal 2012, 2011, and 2010, respectively. These amounts include contingent rentals of $22,659, $23,336 and $27,260 in fiscal 2012, 2011, and 2010, respectively.

During fiscal 2012 the Company sold two owned operating stores to independent third parties. Net proceeds from the sale were $6,038. Concurrent with these sales, the Company entered into agreements to lease the stores back from the purchasers over a minimum lease terms of 7 to10 years. The Company accounted for these leases as operating leases. The transactions resulted in a loss of $3,896 which is included in the gain on sale of assets, net for the fifty-three weeks ended March 3, 2012.

During fiscal 2010, the Company sold a total of 3 owned properties to independent third parties. Net proceeds from these sales were $7,967. Concurrent with these sales, the Company entered into agreements to lease the stores back from the purchasers over minimum lease terms of 10 to 20 years. The Company accounted for all of these leases as operating leases. A gain on the sale of these stores of $5,301 was deferred and is being recorded over the minimum term of these leases.

The net book values of assets under capital leases and sale-leasebacks accounted for under the financing method at March 3, 2012 and February 26, 2011 are summarized as follows:

	2012			2011

Land	$	6,695		$	7,528
Buildings		142,483			148,262
Leasehold improvements		1,236			1,639
Equipment		19,261			22,515
Accumulated depreciation		(100,300	)		(100,561	)

	$	69,375		$	79,383

Following is a summary of lease finance obligations at March 3, 2012 and February 26, 2011:

	2012			2011

Obligations under financing leases	$	119,108		$	128,994
Sale-leaseback obligations		7,876			11,303
Less current obligation		(19,977	)		(18,003	)

Long-term lease finance obligations	$	107,007		$	122,294

Following are the minimum lease payments for all properties under a lease agreement that will have to be made in each of the years indicated based on non-cancelable leases in effect as of March 3, 2012:

Fiscal year	Lease Financing Obligations			Operating Leases

2013	$	30,716		$	1,002,062
2014		22,038			966,754
2015		21,522			913,521
2016		21,421			854,717
2017		19,476			784,330
Later years		59,908			4,304,798

Total minimum lease payments		175,081		$	8,826,182

Amount representing interest		(48,097	)

Present value of minimum lease payments	$	126,984