15. Leases

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 10 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 $8,995, $8,559, and $8,369, was $973,347, $964,484, and $952,777 in fiscal 2016, 2015, and 2014, respectively. These amounts include contingent rentals of $17,755, $18,919 and $18,679 in fiscal 2016, 2015, and 2014, respectively.

During fiscal 2016, the Company sold 10 owned operating stores to independent third parties. Net proceeds from the sale were $36,732. Concurrent with these sales, the Company entered into agreements to lease the stores back from the purchasers over minimum lease terms of 20 years. Eight leases were accounted for as operating leases and the remaining two were accounted for as capital leases. The transactions resulted in a gain for certain stores of $670 which is deferred over the life of the leases. In addition, the transaction resulted in a loss for certain stores of $546 which is included in the loss on sale of assets, net for the fifty-two weeks ended February 27, 2016.

During fiscal 2015, the Company did not enter into any sale-leaseback transactions whereby the Company sold owned operating stores to independent third parties and concurrent with the sale, entered into an agreement to lease the store back from the purchasers.

During fiscal 2014, the Company sold one owned operating store to an independent third party. Net proceeds from the sale were $3,989. Concurrent with this sale, the Company entered into an agreement to lease the store back from the purchaser over a minimum lease term of 20 years. The Company accounted for this lease as an operating lease. The transaction resulted in a gain of $269 which is included in the gain on sale of assets, net for the fifty-two weeks ended March 1, 2014.

The net book values of assets under capital leases and sale-leasebacks accounted for under the financing method at February 27, 2016 and February 28, 2015 are summarized as follows:

	2016			2015
Land	$	5,063		$	5,063
Buildings		136,416			133,177
Leasehold improvements		1,612			1,330
Equipment		33,919			36,934
Accumulated depreciation		(128,168	)		(123,581	)

	$	48,842		$	52,923

Following is a summary of lease finance obligations at February 27, 2016 and February 28, 2015:

	2016			2015
Obligations under financing leases	$	74,913		$	87,253
Sale-leaseback obligations		4,740			4,740
Less current obligation		(26,758	)		(30,841	)

Long-term lease finance obligations	$	52,895		$	61,152

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 February 27, 2016:

Fiscal year	Lease Financing Obligations			Operating Leases
2017	$	32,650		$	1,041,231
2018		14,277			989,087
2019		12,848			906,242
2020		8,784			784,162
2021		5,259			656,268
Later years		30,780			3,393,866

Total minimum lease payments		104,598		$	7,770,856


Amount representing interest		(24,945	)

Present value of minimum lease payments	$	79,653